Home > PPF Levy Forum > How to reduce your levy > Contingent Assets
Contingent Assets
One way to reduce the PPF levy is to put in place contingent assets, in a form acceptable to the PPF and ensure that these have been certified via the Pensions Regulator’s online Exchange system within the timescale indicated above.
Contingent assets include:
- Guarantees given by other companies in the group (Type A)
- Securities over cash, real estate and securities (Type B)
- Letters of credit and bank guarantees (Type C)
Note that any certifications of contingent assets from the previous levy year need to be recertified prior to 31 March 2011 if they are to be used in the 2011/12 levy.
The PPF provide standard documentation which must be used if the contingent asset is to be taken into account in the levy calculation. You should be aware that any new non PPF-compliant charges over assets can have a negative impact on the D&B Failure Score so care should be taken when putting this in place.
The PPF have published
comprehensive guidance on the use of contingent assets.