Pension funds: Surplus & Corporation Tax

May 26, 2004 0 Replies

A discussion in another newgroup ended up in a dead end about why companies are not allowed to make extra contributions to their pension schemes once it becomes 104% funded.



Why is this?



One line of argument was that this would allow firms to hide profits in a tax shelter. I follow the logic, but not how any shareholders would benefit.



What say the finance expert here?



rgds



David



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