Venables v Hornby (HMIT) [2002] EWCA Civ 1277 (18 September 2002)

Venables v Hornby (HMIT) [2002] EWCA Civ 1277 (18 September 2002)

Payments made to Mr Venables were not authorised by the rules of the scheme because he had not 'retired' within the meaning of the scheme, as he continued as a director and thus had not ceased service as an employee. Section 600 of the 1988 Act applies to unauthorised payments, and such payments are taxable...

Source-derived case information.

Citation
[2002] EWCA Civ 1277
Parties
Respondents: Venables and the trustees of the Fussell Pension Scheme; Appellant: Hornby (HMIT)
Jurisdiction
England and Wales
Judgment Date
18 September 2002
Procedural Posture
Appeal From Chancery Division (high Court) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Income Tax on Unauthorised Pension Payments, Interpretation of 'retirement' in Pension Schemes, Taxation of Payments From Approved Pension Schemes, Breach of Trust and Tax Liability
Tax Law Trusts and Pensions Law Income Tax on Unauthorised Pension Payments Interpretation of 'retirement' in Pension Schemes Taxation of Payments From Approved Pension Schemes Breach of Trust and Tax Liability

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Parties

Venables and the trustees of the Fussell Pension Scheme

Respondents

Hornby (HMIT)

Appellant

Procedural Posture

Appeal From Chancery Division (high Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether payments to Mr Venables were 'expressly authorised by the rules of the scheme' for the purposes of section 600 of the Income and Corporation Taxes Act 1988
  2. 2 Whether, if not authorised, the payments should be treated for tax purposes as if they had not been made

Ratio Decidendi

Payments made to Mr Venables were not authorised by the rules of the scheme because he had not 'retired' within the meaning of the scheme, as he continued as a director and thus had not ceased service as an employee. Section 600 of the 1988 Act applies to unauthorised payments, and such payments are taxable regardless of whether the recipient holds the funds on trust or is beneficially entitled.

Court Disposition

Appeal allowed

Orders

  • Respondents to pay Appellant’s costs in the Court of Appeal and in the High Court, subject to detailed assessment unless otherwise agreed