Section 196A of the Finance Act 2004 provided that Regulations could be made restricting the extent to which contributions paid by an employer under a registered pension scheme in respect of an individual are subject to tax relief in two circumstances. The first is where payment of benefits to or in respect of that individual under the scheme are payable only if benefits are not so paid under an employer-financed retirement benefits scheme. The second is where, because benefits are or may be payable to or in respect of that individual under an employer-financed retirement benefits scheme, the value of a transfer out of a registered pension scheme will or may be reduced. These Regulations restrict employers' tax relief in those two circumstances.