Employers are entitled to tax relief on contributions that they make to a registered pension scheme. Such contributions must be made in cash (see commentary on in specie contributions at ¶376-000).
Employers carrying on a trade or profession
Pension contributions are not treated as payments of a capital nature if they otherwise would be and if they are allowed to be deducted in computing profits (because they are incurred wholly and exclusively for the purposes of the trade or profession), they may only be deducted in the period in which they are paid. It is not possible to claim for amounts accrued in the accounts. (FA 2004, s. 196(2)).