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