The Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993

Explanatory Note

(This note is not part of the Regulations)

Section 591(6) of the Income and Corporation Taxes Act 1988 (“section 591(6)”) provides that regulations made by the Commissioners of Inland Revenue (“the Board”) for the purposes of that section may restrict the Board’s discretion to approve a retirement benefits scheme by reference to the benefits provided by the scheme, the investments held for the purposes of the scheme, the manner in which the scheme is administered or any other circumstances whatsoever.

These Regulations, which come into force on 27th December 1993, impose restrictions relating to the repayment to an employee of surplus funds arising from the provision of benefits under schemes to which the employee pays additional voluntary contributions. By virtue of paragraph 33(4) of Schedule 6 to the Finance Act 1989, the method of calculation of surplus funds provided by the Regulations also applies for the purpose of calculating surplus funds of retirement benefits schemes approved by the Board before 27th July 1989.

Regulation 1 provides for citation and commencement.

Regulation 2 contains definitions and provides for determining whether an employer is associated with another employer.

Regulation 3 is introductory.

Regulation 4 restricts the Board’s discretion in relation to retirement benefits schemes which are freestanding additional voluntary contributions schemes where the rules of the scheme do not require the administrator to comply with the requirements of the regulation and, so far as they concern such schemes, of regulation 6.

Regulation 5 restricts the Board’s discretion to approve schemes which are not freestanding additional voluntary contributions schemes where the rules of the scheme do not require the administrator of the scheme to comply with the requirements of the regulation and, so far as they concern main schemes, of regulation 6.

Regulation 6 provides for the calculation of surplus funds.

Other regulations made under section 591(6) are contained in the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self–administered Schemes) Regulations 1991 (S.I. 1991/1614).