Devon and Somerset Fire and Rescue Authority v Lee Howell & Anor

Devon and Somerset Fire and Rescue Authority v Lee Howell & Anor

Mr Howell did not have an actual or prospective right to pension benefits from an age less than 55 as at 5 April 2006 under the Scheme because any entitlement was contingent on the employer's permission, which is a disqualifying contingency under Schedule 36, paragraph 22 of Finance Act 2004. Therefore, the entitlement condition for transitional tax relief was not met, and any payment before age 55 would be an unauthorised payment under the Act.

Parties
Claimant: Devon and Somerset Fire and Rescue Authority; First Defendant: Lee Howell; Second Defendant: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
13 February 2023
Procedural Posture
Part 8 Claim / Trial Judgment
Outcome
Entitlement condition not met; payment before age 55 is unauthorised under Finance Act 2004.
Legal Topics
Transitional Tax Relief, Protected Pension Age, Consent in Pension Schemes, Declaratory Relief
Pensions Tax Statutory Interpretation Transitional Tax Relief Protected Pension Age Consent in Pension Schemes Declaratory Relief

Case Brief

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Parties

Devon and Somerset Fire and Rescue Authority

Claimant

Lee Howell

First Defendant

The Commissioners for His Majesty’s Revenue and Customs

Second Defendant

Procedural Posture

Part 8 Claim / Trial Judgment

Legal Issues

  1. 1 Whether Mr Howell had an 'actual or prospective right' to pension benefits from an age less than 55 as at 5 April 2006 under the Firefighters Pension Scheme for purposes of transitional tax relief under Finance Act 2004
  2. 2 Whether the requirement for employer permission constitutes a contingency that prevents the right from being 'actual or prospective'
  3. 3 Interpretation of 'actual or prospective right' in Schedule 36, paragraph 22 of Finance Act 2004

Ratio Decidendi

Mr Howell did not have an actual or prospective right to pension benefits from an age less than 55 as at 5 April 2006 under the Scheme because any entitlement was contingent on the employer's permission, which is a disqualifying contingency under Schedule 36, paragraph 22 of Finance Act 2004. Therefore, the entitlement condition for transitional tax relief was not met, and any payment before age 55 would be an unauthorised payment under the Act.

Court Disposition

Entitlement condition not met; payment before age 55 is unauthorised under Finance Act 2004.

Orders

  • All consequential matters (including permission to appeal) adjourned.
  • Time for filing notice of appeal extended: 21 days from date final order is sealed.