Dalriada Trustees Ltd v Faulds & Ors [2011] EWHC 3391 (Ch) (15 December 2011)

Dalriada Trustees Ltd v Faulds & Ors [2011] EWHC 3391 (Ch) (15 December 2011)

MPVA loans were unauthorised member payments under s160 and s173 Finance Act 2004, outside the powers of the trustees, void in equity, and cannot be validated by subsequent amendments to the trust deeds.

Source-derived case information.

Citation
[2011] EWHC 3391 (Ch)
Parties
Claimant: Dalriada Trustees Limited; First Defendant: David Alexander Faulds; Second Defendant: Athena Pension Services Limited; Third Defendant: Minerva Pension Services Limited
Jurisdiction
England and Wales
Judgment Date
15 December 2011
Procedural Posture
Civil / First Instance Judgment
Outcome
MPVA loans declared void in equity as unauthorised member payments; trustees not estopped from denying validity; further MPVA loans cannot lawfully be made.
Legal Topics
Unauthorised Member Payments, Trustee Powers, Fraud on the Power, Amendment of Trust Deeds, Pension Scheme Regulation
Pensions Trusts Equity Tax Unauthorised Member Payments Trustee Powers Fraud on the Power Amendment of Trust Deeds +1 more

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Parties

Dalriada Trustees Limited

Claimant

David Alexander Faulds

First Defendant

Athena Pension Services Limited

Second Defendant

Minerva Pension Services Limited

Third Defendant

Procedural Posture

Civil / First Instance Judgment

Legal Issues

  1. 1 Whether MPVA loans were unauthorised member payments under Finance Act 2004
  2. 2 Whether MPVA loans were valid exercises of trustee investment powers
  3. 3 Whether amendments to trust deeds could retrospectively or prospectively validate MPVA loans

Ratio Decidendi

MPVA loans were unauthorised member payments under s160 and s173 Finance Act 2004, outside the powers of the trustees, void in equity, and cannot be validated by subsequent amendments to the trust deeds.

Court Disposition

MPVA loans declared void in equity as unauthorised member payments; trustees not estopped from denying validity; further MPVA loans cannot lawfully be made.

Orders

  • Declaration that MPVA loans are void in equity
  • Declaration that trustees are not estopped from denying validity of loans