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Corporation tax relief claimed on company contributions to private pension scheme

Corporation tax relief claimed on company...

I've received the a copy of accounts and comps from the previous accountant and noticed £5,000 of pension contributions. I asked the client to confirm if this was set up as a company scheme and have now been told by the accountants (who are also registered financial advisors) that it's a personal scheme. They said it was standard practice for all their clients to claim corporation tax relief on company contributions into the personal scheme. Apparently, they didn't set it up as a company scheme to avoid the costs/admin of having to do so.

Is this treatment correct - as I've only ever seen tax relief claimed where the scheme is in the company's name.


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01st Jun 2012 15:50

Salary costs

I can't see how this is a corporation tax issue.  It's part of the employee's remuneration package and should be deductible - it's akin to salary.  Assuming it is correctly treated for income tax purposes, the it seems ok to me.

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01st Jun 2012 16:20


Yes it's not a problem.

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01st Jun 2012 17:14

Thank you ....

Thanks for the quick replies.

I think I'm confusing myself here then. It's a "one man" company which is paying into the director's personal pension scheme. These are disclosed as pension contributions and claimed against taxable profits. However, they are not treated as part of director's remuneration or processed through PAYE on the director personally.

I was under the impression that in order for the contributions to be allowable against tax, the pension scheme had to be a company scheme?





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01st Jun 2012 21:12

Double tax relief
You need to concentrate on whether these contributions have been treated as net and grossed up by HMRC already. In which case i doubt they would look favourably on claiming CT relief on top!

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