Subject to paragraph (2), the rules of a stakeholder pension scheme may permit the trustees or manager to refuse to accept a payment to the scheme of less than £20.

Paragraph (1) does not permit the trustees or manager to refuse to accept any payment made to the scheme by the Inland Revenue by way of tax relief, minimum contributions, minimum payments or any payment under section 42A(3) of the 1993 Act (reduced rate of Class 1 contributions, and rebates).

For the purposes of paragraph (1), amounts in respect of income tax deducted and retained by a member as permitted by section 639 of the Income and Corporation Taxes Act (tax reliefs: member’s contributions) shall not be treated as payments to the scheme.

The trustees or manager of a stakeholder pension scheme may refuse to accept any contribution if its acceptance would contravene the terms of the scheme’s tax-exemption or tax-approval under Chapter IV of Part XIV of the Income and Corporation Taxes Act.