# Finance Act 2004, Section 245: Restriction of deduction for contributions by employer

Extent: E+W+S+N.I.

(1) Schedule 24 to the Finance Act 2003 (c. 14) (restriction of deductions for employee benefit contributions) is amended as follows.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In sub-paragraph (1) of paragraph 2 (“qualifying benefits”), insert at the end
“or
(c) is made under an employer-financed retirement benefits scheme.”
(4) In sub-paragraph (5) of that paragraph (when qualifying benefit treated as provided), after “payment of money” insert “otherwise than under an employer-financed retirement benefits scheme”.
(5) In paragraph 8 (deductions to which Schedule does not apply), for paragraphs (b) and (c) substitute—
“(b) in respect of contributions under a registered pension scheme or a section 615(3) scheme,
(c) in respect of contributions under a qualifying overseas pension scheme in respect of an individual who is a relevant migrant member of the pension scheme in relation to the contributions,”.
(6) In sub-paragraph (1) of paragraph 9 (interpretation), in the definition of “employee benefit scheme”, after “include,” insert “present or former”.
(7) In that sub-paragraph, after the definition of “the employer” insert—
““employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003 (see section 393A of that Act);”.
(8) In that sub-paragraph, after the definition of “qualifying expenses” insert—
““qualifying overseas pension scheme” has the same meaning as in Schedule 33 to the Finance Act 2004 (see paragraphs 5 and 6 of that Schedule);
“registered pension scheme” has the same meaning as in Part 4 of that Act (see section 150 of that Act);
“relevant migrant member” has the same meaning as in Schedule 33 to that Act (see paragraph 4 of that Schedule);
“section 615(3) scheme” means a superannuation fund to which section 615(3) of the Taxes Act 1988 applies;”.

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Source: https://www.legislation.gov.uk/ukpga/2004/12/section/245 (the official version)
Page: https://openlegislation.uk/finance-act-2004/section-245
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.