Clark v Revenue and Customs (INCOME TAX/CORPORATION TAX : Pension scheme) [2016] UKFTT 630 (TC) (12 September 2016)

Clark v Revenue and Customs (INCOME TAX/CORPORATION TAX : Pension scheme) [2016] UKFTT 630 (TC) (12 September 2016)

The Tribunal held that the trust establishing the LML Pension was void for uncertainty, following the reasoning in Re LPA Umbrella Trust, and therefore the LML Pension was not a registered pension scheme under s 150 FA 2004. As a result, the transfer of funds from the LML Pension to LML could not be an unauthorised...

Source-derived case information.

Citation
[2016] UKFTT 630 (TC)
Parties
Appellant: Gareth Clark; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
12 September 2016
Procedural Posture
Income Tax/corporation Tax: Pension Scheme Appeal / First Tier Tribunal (tax) Substantive Judgment
Outcome
Appeal allowed
Legal Topics
Unauthorised Pension Payments, Registered Pension Schemes, Trust Law Certainty, Finance Act 2004, Pensions Act 1995, Discovery Assessments
Tax Law Pensions Law Unauthorised Pension Payments Registered Pension Schemes Trust Law Certainty Finance Act 2004 Pensions Act 1995 Discovery Assessments

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Parties

Gareth Clark

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax: Pension Scheme Appeal / First Tier Tribunal (tax) Substantive Judgment

Legal Issues

  1. 1 Whether the Laversham Marketing Limited Pension Scheme (LML Pension) was a 'registered pension scheme' under s 150 FA 2004
  2. 2 Whether the transfer of funds from the LML Pension to LML constituted an 'unauthorised member payment' under s 160(2) FA 2004
  3. 3 Whether the trust establishing the LML Pension was void for uncertainty, and the consequences for tax charges

Ratio Decidendi

The Tribunal held that the trust establishing the LML Pension was void for uncertainty, following the reasoning in Re LPA Umbrella Trust, and therefore the LML Pension was not a registered pension scheme under s 150 FA 2004. As a result, the transfer of funds from the LML Pension to LML could not be an unauthorised member payment under s 160(2) FA 2004. The assessment on Mr Clark for unauthorised payments charge and surcharge was not sustainable on this basis.

Court Disposition

Appeal allowed

Orders

  • The assessment for unauthorised payments charge and surcharge against Mr Clark is discharged.