Article 2 Amendment of section 592 of the Income and Corporation Taxes Act 1988

Section 592 of the Income and Corporation Taxes Act 1988 (exempt approved pension schemes)^f1 is amended as follows.

For subsection (4) substitute—

“(4)

Where the employer makes contributions to the pension scheme in respect of any individual, then—

(a)

for the purposes of Case I or II of Schedule D the contributions—

(i)

are to be treated as not being payments of a capital nature, to the extent that they otherwise would be,

(ii)

are allowed as a deduction 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.”.