C1C2C3C4C6C7C8C9Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C8

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C5Chapter 6Schemes that are not registered pension schemes

Annotations:
Modifications etc. (not altering text)

Employer-financed retirement benefit schemes

I1C5246C5Restriction of deduction for non-contributory provision

1

This section applies in relation to an employer’s expenses of providing benefits to or in respect of present or former employees under an employer-financed retirement benefits scheme in a case where—

a

the expenses do not consist of the making of contributions under the scheme, but

b

in accordance with generally accepted accounting practice they are shown in the employer’s accounts.

2

Unless the benefits are ones in respect of which a person is, on receipt, chargeable to income tax, the expenses—

a

are not deductible in computing the amount of the profits of the employer for the purposes of F1Part 2 of ITTOIA 2005F5or Part 3 of CTA 2009 (trading income),

b

are not expenses of management of the employer for the purposes of F3Chapter 2 of Part 16 of CTA 2009 (expenses of management: companies with investment business), and

c

are not to be brought into account at Step 1 in section 76(7) of ICTA (expenses of insurance companies) in respect of the employer.

3

But where the benefits are ones in respect of which a person is, on receipt, chargeable to income tax—

a

if the expenses are allowed to be deducted in computing the amount of the profits of the employer to be charged under F2Part 2 of ITTOIA 2005F6or Part 3 of CTA 2009 (trading income), they are deductible in computing the amount of the profits for the period of account in which they are paid, and

b

for the purposes of the operation F4in relation to the employer of section 76 of ICTA or Chapter 2 of Part 16 of CTA 2009, the expenses are referable to the accounting period in which they are paid.

4

In this section “employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see section 393A of that Act).