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UK Parliament Acts/F/FH-FN/Finance Act 2004 (2004 c 12)/Part 4 Pension Schemes etc (ss149-284)/196 Relief for employers in respect of contributions paid

Employers' contributions

196 Relief for employers in respect of contributions paid

(1) This section makes provision about an employer's entitlement to relief in respect of contributionspaid by the employer under a registered pension scheme in respect of any individual.

(2) For the purposes of [Part 2 of ITTOIA 2005] [or Part 3 of CTA 2009 (trading income)]--

(a) the contributions are to be treated as not being payments of a capital nature to the extent thatthey otherwise would be, and

(b) if they are allowed to be deducted in computing the amount of the profits of the employer, theyare deductible in computing the amount of the profits for the period of account in which they are paid.

(3) For the purposes of [Chapter 2 of Part 16 of CTA 2009] (expenses of management: companies withinvestment business), the contributions--

(a) are to be treated as being expenses of management to the extent that they otherwise would notbe, and

(b) are referable to the accounting period in which they are paid.

(4) For the purposes of section 76 of ICTA (expenses of insurance companies), the contributions--

(a) are to be brought into account at Step 1 in subsection (7) of that section to the extent that theyotherwise would not be, and

(b) are referable to the accounting period in which they are paid.

(5) The references in this section to contributions include minimum payments under--

(a) section 8 of the Pension Schemes Act 1993 (c 48), or

(b) section 4 of the Pension Schemes (Northern Ireland) Act 1993 (c 49),

other than any part recovered from a member of the pension scheme under regulations made undersubsection (3) of either of those sections.

(6) This section is subject to sections 197 and 198 (spreading of relief) (and to transitional provisioncontained in Part 4 of Schedule 36).

NOTES

Initial Commencement

Royal Assent

This Act received Royal Assent on 22 July 2004: for provision as to the commencement of thissection see s 284.

Amendment

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Sub-s (2): words in square brackets beginning with the words "Part 2 of" inserted by the Income Tax(Trading and Other Income) Act 2005, s 882(1), Sch 1, Pt 2, paras 629, 646.

Date in force: 6 April 2006: see the Income Tax (Trading and Other Income) Act 2005, s883(4), Sch 2, Pt 12, para 161 and s 284(1) hereof.

Sub-s (2): words "or Part 3 of CTA 2009 (trading income)" in square brackets substituted by theCorporation Tax Act 2009, s 1322, Sch 1, Pt 2, paras 569, 573(1), (2); for transitional provisions andsavings see s 1325(1), Sch 2, Pts 1, 2 thereto.

Date in force: this amendment has effect for corporation tax purposes for accounting periodsending on or after 1 April 2009: see the Corporation Tax Act 2009, s 1329(1)(a).Date in force: this amendment has effect for income tax and capital gains tax purposes for thetax year 2009-10 and subsequent tax years: see the Corporation Tax Act 2009, s 1329(1)(b).

Sub-s (3): words "Chapter 2 of Part 16 of CTA 2009" in square brackets substituted by the CorporationTax Act 2009, s 1322, Sch 1, Pt 2, paras 569, 573(1), (3); for transitional provisions and savings see s1325(1), Sch 2, Pts 1, 2 thereto.

Date in force: this amendment has effect for corporation tax purposes for accounting periodsending on or after 1 April 2009: see the Corporation Tax Act 2009, s 1329(1)(a).Date in force: this amendment has effect for income tax and capital gains tax purposes for thetax year 2009-10 and subsequent tax years: see the Corporation Tax Act 2009, s 1329(1)(b).

See Further

This Part applies in relation to the Pension Protection Fund in the same way as it applies to a registeredpension scheme for the period beginning on 6 April 2006: the Pension Protection Fund (Tax) Regulations2006, SI 2006/575, regs 2-32.This Part applies in relation to a contributions refund lump sum as if it were a short service refund lumpsum in excess of the limit specified in s 205(4) hereof: the Finance Act 2009, s 72, Sch 35, para 18; foreffect see Sch 35, para 21 thereto; for modification of the Finance Act 2009, Sch 35, para 18 in itsapplication to individuals who are members of currently-relieved non-UK pension schemes, see SI

2009/2031, arts 3, 11.

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