Income and Corporation Taxes Act 1988

178 Cancellation of registration. U.K.

M1 (1) If after a scheme has been registered under this Chapter it appears to the Board—

(a) that the scheme has not been or will not be administered in accordance with [F1 its terms or in accordance with] this Chapter in relation to a profit period; or

(b) that the circumstances relating to the scheme have during a profit period become such that (if it were not registered) an application to register it under this Chapter would be excluded by section 174; or

(c) in the case of a scheme which employs (as the method of determining the distributable pool for a profit period) the method described as method B in paragraph 14 of Schedule 8, that losses were incurred in a profit period or in the preceding period of 12 months; or

(d) that the undertaking given in compliance with section 175(1)(c) has not been complied with in relation to employment at any time during a profit period;

the Board may cancel the registration and, subject to [F2 subsections (5) and (5A)] below, the cancellation shall have effect from the beginning of that profit period.

(2) If after a scheme has been registered under this Chapter it appears to the Board—

(a) that at the time of registration the scheme did not comply with the requirements of Schedule 8 or that the application did not comply with the requirements of this Chapter;or

(b) in the case of a scheme which employs (as the method of determining the distributable pool for a profit period)the method described as method A in paragraph 13of Schedule 8,that losses were incurred in the base year specified in the schemeF3 ;

the Board may cancel the registration with effect from the beginning of the profit period (or first profit period) to which the scheme related.

(3) If after a scheme has been registered under this Chapter the scheme employer fails to comply with the requirements of section 180 in relation to a profit period, the Board may cancel the registration with effect from the beginning of that profit period.

[F4 (3A) Where the terms of a registered scheme have been altered, then, subject to section 177B(2), the Board may cancel the registration of the scheme with effect from the beginning of the profit period during which the alteration took effect or with effect from the beginning of any later profit period.

(3B) If after an alteration of the terms of a scheme has been registered under section 177B it appears to the Board—

(a) that the application for registration of the alteration did not comply with the requirements of subsection (4) of that section, or

(b) that the declaration referred to in subsection (4)(c) of that section was false,

the Board may cancel the registration of the scheme with effect from the beginning of the profit period during which the alteration took effect or with effect from the beginning of any later profit period.]

(4) If the scheme employer by notice requests the Board to cancel the registration of the scheme with effect from the beginning of a profit period specified in the notice, the Board shall comply with the request.

(5) Where—

(a) the scheme employer has given to the Board in accordance with section 181(3) notice of a change in the employment unit, or in the circumstances relating to the scheme, which is a ground for cancellation of the registration of the scheme by virtue of subsection (1)(a) or (b) above, and

(b) the Board are satisfied that the change is not brought about with a view to the registration of a new scheme, and

(c) in the notice the scheme employer requests the Board to cancel the registration of the scheme with effect from the date of the change,

then, if the notice is given before the end of the period of one month beginning with that day, the Board shall comply with the request.

[F4 (5A) Where—

(a) the scheme employer has died, and

(b) his personal representatives by notice request the Board to cancel the registration of the scheme with effect from the date of death,

then, if the notice is given before the end of the period of one month beginning with the date of the grant of probate or letters of administration or, in Scotland, confirmation of executors, the Board shall comply with the request.]

(6) The Board shall give notice to the scheme employer of the cancellation of a scheme’s registration.

Textual Amendments

F1 1988(F) s.146and Sch.13 para.4 (deemed always to have had effect).

F2 1989 s.61and Sch.4 para.4(2).Previously

“subsection (5)”.

F3 Repealed by 1989 ss.61and 187and Schs.4 para.10(2)(a)and 17 Part IV.

F4 1989 s.61and Sch.4 paras.4(3), 4(4).

Marginal Citations

M1 Source—1987 (No.2) s.10