22 October 2000
Individuals can contribute to a stakeholder pension from 6 April 2001. Almost anyone who is resident in the United Kingdom is eligible to contribute up to £3,600 per year. All companies which are not exempt must provide access to a stakeholder pension for their employees. A family company may wish to extend this access to non-working shareholders or relatives of employees and directors who have no or little income of their own. If they do so, would this constitute a benefit in kind for the relative-employee?
Individuals can contribute to a stakeholder pension from 6 April 2001. Almost anyone who is resident in the United Kingdom is eligible to contribute up to £3,600 per year. All companies which are not exempt must provide access to a stakeholder pension for their employees. A family company may wish to extend this access to non-working shareholders or relatives of employees and directors who have no or little income of their own. If they do so, would this constitute a benefit in kind for the relative-employee? This is assuming that the company does not make any contributions to the stakeholder scheme on behalf of the non-employed members.
Is the company permitted to make contributions to a stakeholder scheme for non-employed members, perhaps ex-employees on a career break, or spouses of directors? If it does, would these non-employees be taxed on those contributions?
(Query T15,711) RC.
Is the company permitted to make contributions to a stakeholder scheme for non-employed members, perhaps ex-employees on a career break, or spouses of directors? If it does, would these non-employees be taxed on those contributions?
(Query T15,711) RC.
