West v Revenue & Customs (PROCEDURE : INCOME TAX - Unauthorised Payments - Pension Schemes) [2019] UKFTT 602 (TC) (25 September 2019)

West v Revenue & Customs (PROCEDURE : INCOME TAX - Unauthorised Payments - Pension Schemes) [2019] UKFTT 602 (TC) (25 September 2019)

The Tribunal found that the loan received by the Appellant and his wife was a payment made in connection with an investment acquired using the sums or assets held for the purposes of the Appellant’s pension scheme, and thus constituted an unauthorised payment under the Finance Act 2004. The tax assessment was validly raised within the statutory time limit, and the conditions for a discovery assessment were satisfied. The appeal was dismissed and the assessment confirmed in the reduced sum of £4,460.

Citation
[2019] UKFTT 602 (TC)
Parties
Appellant: Gary West; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 September 2019
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Summary Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Unauthorised Payments, Pension Schemes, Discovery Assessments
Tax Law Pensions Law Income Tax Unauthorised Payments Pension Schemes Discovery Assessments

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Parties

Gary West

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Summary Decision

Legal Issues

  1. 1 Whether the loan received by the Appellant and his wife from Blu Funding Corporation Ltd was a payment made under or in connection with an investment acquired using the sums or assets held for the purposes of the Appellant’s pension scheme.
  2. 2 Whether the payment is an unauthorised payment under Part 4, Finance Act 2004, and as such is chargeable under section 208 Finance Act 2004.
  3. 3 Whether the discovery assessment issued by HMRC under section 29(1)(b) Taxes Management Act 1970 is correct, competent and issued within the relevant time limit.

Ratio Decidendi

The Tribunal found that the loan received by the Appellant and his wife was a payment made in connection with an investment acquired using the sums or assets held for the purposes of the Appellant’s pension scheme, and thus constituted an unauthorised payment under the Finance Act 2004. The tax assessment was validly raised within the statutory time limit, and the conditions for a discovery assessment were satisfied. The appeal was dismissed and the assessment confirmed in the reduced sum of £4,460.

Court Disposition

Appeal dismissed

Orders

  • Assessment confirmed in the reduced sum of £4,460
  • Tribunal invites HMRC to consider mitigation of the assessment consequences for the Appellant and his wife