This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

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

This is one of our 2098 Premium articles

To see this article in full and unlock access to our complete library of 2098 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Start your free trial today

Interested in receiving the latest monthly tax saving tips? Start your 14 day free trial to our newsletters today.