A: Employers receive tax relief on their contributions to a registered pension scheme on the same basis as all their other business expenditure. Tax relief on employer contributions to a registered pension scheme is given by allowing contributions made to the scheme to be deducted as an expense in computing the profits of a trade, profession or investment business, and so reducing the amount of an employer's taxable profit.
If the employer is an investment company, eg a company that invests in property, then employer pension contributions are deductible as an expense of management. However they can be challenged by HMRC if the expenses are excessive in comparison to the amount of management work (time) undertaken in the company.
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