# The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004, Paragraph 30: Exempt approved schemes


(1) Section 592 is amended as follows.
(2) For subsection (4) (deduction of employer’s contributions) substitute—
“(4) This subsection makes provision about an employer’s entitlement to relief in respect of contributions paid by the employer the pension scheme in respect of any individual, and accordingly—
(a) for the purposes of Case I or II of Schedule D—
(i) the contributions are to be treated as not being payments of a capital nature to the extent that they otherwise would be, and
(ii) if they are allowed to be deducted in computing the amount of the profits of the employer, they are deductible in computing the amount of the profits for the period of account in which they are paid;
(b) for the purposes of section 75 (expenses of management: companies with investment business), the contributions—
(i) are to be treated as being expenses of management to the extent that they otherwise would not be, and
(ii) are referable to the accounting period in which they are paid;
(c) for the purposes of section 76 (expenses of insurance companies), the contributions—
(i) are to be brought into account at Step 1 in subsection 7 of that section to the extent that they otherwise would not be, and
(ii) are referable to the accounting period in which they are paid.”.
(3) In subsection (5) (limit on amount that may be deducted under subsection (4)) for “be deducted under subsection (4) above” substitute the following paragraphs—
“(a) be deducted under paragraph (a) of subsection (4) above,
(b) be deductible under paragraph (b) of that subsection, or
(c) be included at Step 1 in section 76(7),”.
(4) For subsection (6) (power of Board to direct sum not paid by way of ordinary annual contribution to be treated as expense incurred in chargeable period in which paid or to be spread over period of years) substitute—
“(6) A sum not paid by ordinary way of annual contribution shall for the purposes of subsection (4) above be treated, as the Board may direct, either—
(a) as an expense deductible for the chargeable period in which the sum is paid,
(b) as expenses of management deductible under section 75 for that chargeable period, or
(c) for the purposes of section 76, as expenses payable referable to that chargeable period,
or as an expense to be spread over such period of years as the Board think proper.”.

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Source: https://www.legislation.gov.uk/uksi/2004/2310/schedule/paragraph/30 (the official version)
Page: https://openlegislation.uk/finance-act-2004-sections-38-to-40-and-45-and-schedule-6-consequential-amendment-of-enactments-order-2004/schedule/paragraph-30
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.