NAPF concern on employer contribution rule

Published in January by Her Majesty’s Revenue and Customs (HMRC), the guidance for the draft A-Day legislation states employer contributions to pension schemes only receive tax relief if the contributions are “wholly and exclusively” for the purposes of business. NAPF say this causes problems for DB multi-employer schemes, as the legislation appears to remove tax relief for deficit-reducing contributions attributable to former employees of companies within a corporate group which have been sold or wound up. Although the guidance says contributions must be “wholly and exclusively” for bu...