Ian Cochrane
Ian has been at the forefront of the development of Asset Backed Contribution arrangements for over 15 years. He combines his accounting and tax knowledge with extensive pensions and commercial experience to design and implement bespoke funding solutions for clients.
Practice Area
Panel
- Contributing Author
Experience
- KPMG LLP (1993 - 2020)
Education
- University of Nottingham (1993)
2 Contributions by Ian Cochrane
PRACTICE NOTES
Asset-backed contributions to defined benefit schemes: UK tax treatment under FA 2004 sections 196B–196L, structured finance rules, accounting, qualifying/non-qualifying status, ongoing payments, claw back and restructuring
Financing defined benefit pension schemes, together with the instability and exposure inherent in such schemes, has posed a persistent challenge for numerous employers over a prolonged period.
Asset-backed contribution (ABC) structures offer an option to cut pension scheme shortfalls, serving as a substitute for cash under a conventional contributions schedule framework.
That said, ABCs are inherently intricate, and tax remains a critical factor—both to secure the intended fiscal treatment and to lessen the possibility of any adverse tax effects emerging in implementation phases overall.
This Practice Note sets out a concise outline of ABCs and then examines the principal tax issues relevant to an ABC framework, including restructuring and unwinding, principally governed by sections 196–196L of the Finance Act 2004 (FA 2004), as applicable herein.
For added detail on the nature of ABCs, their role in addressing pension scheme deficits, and the core points to weigh when establishing such an arrangement, refer to Practice Note: Asset-backed contributions for pension schemes...
Pensions
PRACTICE NOTES
UK tax deductibility and timing of Pensions Act 1995 section 75 employer debts in defined benefit occupational pension schemes: spreading, apportionment/withdrawal, investment company rules, and subsidiary disposals
This practice note concerns defined benefit occupational pension schemes.
What is a section 75 debt?
Sections 75 and 75A of the Pensions Act 1995 aim to ensure defined benefit occupational pension schemes are properly funded on wind-up, or when the sponsoring employer goes into liquidation. In a multi-employer arrangement, a liability also arises for any employer that stops employing active members while another employer still has at least one active member (an ‘employment cessation event’), even though neither the scheme nor the exiting employer is being wound up.
For further detail on when section 75 debts arise and how they are assessed, see the following Practice Notes:
How to deal with a section 75 debt—an introduction
When is a section 75 debt triggered?
Calculating a section 75 debt
What is the tax treatment of a section 75 debt?
When a section 75 debt is payable, the key tax question is whether the payer can claim a tax deduction. Put another way, is the payment an allowable expense that reduces the payer’s...
Pensions
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