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Cash is king – Or is it?

Shared from Tax Insider: Cash is king – Or is it?
By Mark McLaughlin, October 2021

Mark McLaughlin looks at pension scheme contributions and what constitutes a valid payment of pension contributions for tax purposes.

Tax relief is available to individuals for contributions paid to a registered pension scheme, where certain conditions are satisfied. 

HM Revenue and Customs (HMRC) considers ‘paid’ generally means the contributions must be of a monetary amount, such as cash or bank transfer (NB, a possible exception applies for eligible shares relating to SAYE schemes or share incentive plans, which is not relevant here). 

HMRC says ‘yes’ …

However, HMRC’s Pensions Tax manual (at PTM042100) currently states that in certain circumstances, it is possible for a pension contribution involving an asset to retain its monetary form for tax purposes. 

Taxpayers (or advisers) and pension scheme trustees reading the

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