White v Revenue and Customs (INCOME TAX/CORPORATION TAX : Pension scheme) [2016] UKFTT 802 (TC) (30 November 2016)

White v Revenue and Customs (INCOME TAX/CORPORATION TAX : Pension scheme) [2016] UKFTT 802 (TC) (30 November 2016)

A loan to a member is a 'payment' under Part 4 of the Finance Act 2004, and where such a loan is causally linked to an investment made by the pension scheme, it constitutes an unauthorised member payment, triggering the statutory income tax charge.

Citation
[2016] UKFTT 802 (TC)
Parties
Appellant: Richard White; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
30 November 2016
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Unauthorised Member Payment, Pension Scheme Investments, Income Tax Charge, Finance Act 2004 Interpretation
Tax Law Pension Law Unauthorised Member Payment Pension Scheme Investments Income Tax Charge Finance Act 2004 Interpretation

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Parties

Richard White

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether a loan is a 'payment' under Part 4 of the Finance Act 2004
  2. 2 Whether the loan was an unauthorised member payment made in connection with an investment by the pension scheme

Ratio Decidendi

A loan to a member is a 'payment' under Part 4 of the Finance Act 2004, and where such a loan is causally linked to an investment made by the pension scheme, it constitutes an unauthorised member payment, triggering the statutory income tax charge.

Court Disposition

Appeal dismissed

Orders

  • The unauthorised payment charge of £30,000 is upheld against the appellant.