HM Revenue and Customs has published further guidance clarifying A-Day changes on tax relief for employer contributions by owners and controlling directors of companies.
Following A-Day HMRC stated any employer pension contribution would only receive corporation tax relief if it is ‘wholly and exclusively’ for the purposes of the business, which at the time caused some confusion among both the industry and local inspectors of taxes. However, in February HMRC published additional guidance on this issue which confirmed the ‘wholly and exclusively’ test would only apply in limited circumstances as the payment of a pension contribution is part of the normal costs of employing staff. Now the Revenue has responded to calls for more clarification on how the new...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes