Nilebond Limited v The Commissioners for HMRC

Nilebond Limited v The Commissioners for HMRC

The loan was not an authorised employer loan because the charge was not registered at Companies House within the statutory period. Retrospective registration did not satisfy the statutory requirements, and the loan was therefore an unauthorised employer payment, attracting a scheme sanction charge.

Parties
Appellant: Nilebond Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
19 December 2022
Procedural Posture
Tax Appeal / Judgment After Full Hearing
Outcome
Appeal dismissed
Legal Topics
Scheme Sanction Charge, Unauthorised Employer Payment, Authorised Employer Loan, Registration of Charges, Retrospective Registration
Tax Law Pensions Law Company Law Scheme Sanction Charge Unauthorised Employer Payment Authorised Employer Loan Registration of Charges Retrospective Registration

Case Brief

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Parties

Nilebond Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment After Full Hearing

Legal Issues

  1. 1 Whether the loan made by the pension scheme was an unauthorised employer payment under the Finance Act 2004
  2. 2 Whether registration of the charge at Companies House was required for the loan to be authorised
  3. 3 Effect of retrospective registration of the charge

Ratio Decidendi

The loan was not an authorised employer loan because the charge was not registered at Companies House within the statutory period. Retrospective registration did not satisfy the statutory requirements, and the loan was therefore an unauthorised employer payment, attracting a scheme sanction charge.

Court Disposition

Appeal dismissed

Orders

  • Scheme sanction charge of £15,000 upheld against Nilebond Limited