Company acquires a retirement annuity

Company acquires a retirement annuity - tax deductible?

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Hello,

If a company buys a retirement annuity, presumably so that it can provide a regular retirement income to some of its retired staff, would that be an allowable expense for the corporation tax purposes?

I have never seen a company acquire an annuity before, certainly not where the expense is recongised in the P&L outside of the usual DB accounting entries. The company in question offers two different types of pension scheme to its employees (one a defined contribution, another a defined benefit), so I would've thought the separately administered pension schemes should be incurring these costs. As far as I can tell, the annuity doesn't relate to the DB scheme as all accounting entries for that can be identified. Any ideas why this cost would be in the P&L.

Clearly a question for the client but as I haven't see it before, I thought I'd see if any one on here had?

Thanks

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