Finance Act 1986

1 (1) This paragraph applies where a payment is made to an employer out of funds which are or have been held for the purposes of a scheme which is or has at any time been an exempt approved scheme.

(2) An amount equal to 40 per cent, of the payment shall be recoverable by the Board from the employer.

(3) This paragraph applies whether or not the payment is made in pursuance of Part II of this Schedule.

(4) Paragraph 4 of Schedule 5 to the [1970 c. 24.] Finance Act 1970 (charge to tax on payments to employer) shall not apply to a payment to which this paragraph applies or would apply apart from sub-paragraph (5) or (6) below.

(5) This paragraph does not apply to a payment to the extent that, if this paragraph had not been enacted, the employer would have been exempt, or entitled to claim exemption, from income tax or corporation tax in respect of the payment.

(6) This paragraph does not apply where the employer is a charity; and "charity" here has the same meaning as in section 360 of the Taxes Act.

(7) This paragraph does not apply to any payment of any prescribed description.

(8) This paragraph does not apply to a payment made before the scheme became an exempt approved scheme.

(9) References in this paragraph to a payment include references to a transfer of assets or other transfer of money's worth.

(10) In this paragraph "exempt approved scheme" means an exempt approved scheme within the meaning given by section 21(1) of the [1970 c. 24.] Finance Act 1970.

(11) This paragraph applies to a payment made after 18th March 1986 unless made as mentioned in sub-paragraph (12) or (13) below.

(12) This paragraph does not apply to a payment made in pursuance of the winding-up of the scheme where the winding-up commenced on or before 18th March 1986.

(13) This paragraph does not apply to a payment made in pursuance of an application which—

(a) was made to the Board on or before 18th March 1986 and was not withdrawn before the making of the payment, and

(b) sought the Board's assurance that the payment would not lead to a withdrawal of approval under section 19(3) of the Finance Act 1970.