N & M Gratton v HMRC

In N & M Gratton v HMRC (TC00776 – 18 November) a couple arranged for their pension funds to be transferred to Guernsey schemes. They leased a property in Alderney (which is part of the Bailiwick of Guernsey) but never occupied it. When the Revenue discovered what had happened they issued assessments on the basis that the transfers had not met the criteria set out in the Reciprocal Arrangement between Guernsey and the UK and were ‘unauthorised’ transfers within ICTA 1988 s 647. They also imposed penalties under TMA 1970 s 95 (mitigated by 55%). The couple appealed contending that they had acted in good faith and had been told that they were entering into a legitimate tax avoidance scheme. The First-Tier Tribunal reviewed the evidence in detail and dismissed the appeals against the assessments but allowed the appeals against...