Commentary

31.4 Relaxation of the rules on investment

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

31.4 Relaxation of the rules on investment

| Commentary

31.4 Relaxation of the rules on investment

Another advantage of a registered pension scheme is that the pension fund itself receives various tax breaks. Effectively, the pension fund builds up free of tax. This is because no income tax is payable on the income received from investment of the contributions and no capital gains tax is payable on the disposal of investments.

The new regime does not change this basic principle but it does extend the range of permissible property in which the fund may invest. Under the old regime, there were various restrictions preventing approved pension schemes from investing

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