The Occupational Pension Schemes (Additional Voluntary Contributions) Regulations 1987

Explanatory Note

(This note is not part of the Regulations)

These Regulations supplement paragraph 6A of Schedule 5 to the Finance Act 1970 (which was inserted by paragraph 12 of Schedule 3 to the Finance (No.2) Act 1987) which provides for relief by deduction from contributions made to approved occupational schemes to which employees, but not their employers, are contributors and which provide benefits additional to benefits provided by schemes to which their employers are contributors.

Paragraph 6A(2) provides that an employee who is entitled to relief under section 21(4) of the Finance Act 1970 in respect of a contribution may deduct from the contribution when he pays it, and may retain, an amount equal to income tax at the basic rate. Paragraph 6A(3) provides that the administrator of a scheme shall accept the amount paid after deduction in discharge of an employee’s liability to the same extent as if the deduction had not been made, and may recover an amount equal to the deduction from the Commissioners of Inland Revenue (“the Commissioners”).

Regulation 1 provides for citation and commencement and regulation 2 for interpretation.

Regulation 3 introduces regulations 4 and 5 which, respectively, prescribe the cases in which, and the conditions subject to which, relief shall be given in accordance with paragraph 6A(2) and (3).

Regulation 6 introduces regulations 7 and 8 which, respectively, provide a system of interim and annual claims by which scheme administrators may recover from the Commissioners amounts equal to those deducted under paragraph 6A(2) of the Schedule. Regulation 9 contains supplementary provisions including a right of appeal against decisions on annual claims.

Regulation 10 provides that when, following the withdrawal of approval of a scheme, the scheme administrator furnishes information to the Commissioners he shall at the same time pay to them the difference between the amount (if any) of relief obtained under section 21(4) of the Finance Act 1970 by means of contributions paid under paragraph 6A(2) and (3) of the Schedule to that Act and the amount of such relief actually due.

Regulation 11 provides for the recovery by assessment from administrators of schemes of amounts paid to them by the Commissioners to which they are not entitled, which are recoverable in default or which are recoverable following the withdrawal of approval of a scheme.

Regulation 12 provides that the Commissioners may require a present, or former, administrator of a scheme, or an employee who has contributed to a scheme, to furnish them with information. In addition, the regulation provides that if the Commissioners withdraw their approval of a scheme, or if a member of a scheme fails to comply with regulation 5(1)(b), the administrator of that scheme shall furnish information to them.

Regulation 13 provides for the inspection by a person authorised by the Commissioners of books, documents and records.