EIM15407 - Non-approved schemes: identification

Section 387(2) ITEPA 2003

A retirement benefits scheme was non-approved unless it is within one of the three categories specified in Section 387(2) ITEPA 2003. These are:

• a scheme approved by Audit & Pension Schemes Services (now Pension Schemes Services) (Note: see EIM15408 for guidance on the treatment of periods when a scheme is not approved)
• a relevant statutory scheme. Public sector pension schemes are usually within this category. Pension Schemes Services (PSS) can advise if a scheme is a statutory scheme but broadly it is a scheme either:

• set up under an enactment where the particulars are set out in that enactment or in regulations made under it, or
• a scheme approved by a Minister or Government department

• a scheme set up by a Government outside the UK for the benefit of its employees.

It follows that most schemes set up and administered outside the UK will be classified as non- approved (see EIM15416 for further guidance concerning such schemes).