Matthew Harrison (Withers) examines the Upper Tribunal decision concerning the registered pension scheme regime.
An individual is entitled to tax relief under FA 2004 s 188(1) in respect of contributions ‘paid’ to a registered pension scheme. The transfer of an asset (for nil consideration) is undoubtedly a ‘contribution’ but is it a contribution ‘paid’? If not does it make any difference if the asset is transferred to discharge a pre-existing money debt? I will suggest below that it does make a difference and the Upper Tribunal (UT) was wrong in HMRC v SippchoiceLtd [2020] UKUT 149 to hold otherwise. To distinguish the two types of in specie contribution I refer to the former as ‘asset contributions’ and the latter as ‘discharge contributions’.
The background to the case
The facts in Sippchoice can be simply stated. An individual agreed to contribute £68 324 to a SIPP...
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Matthew Harrison (Withers) examines the Upper Tribunal decision concerning the registered pension scheme regime.
An individual is entitled to tax relief under FA 2004 s 188(1) in respect of contributions ‘paid’ to a registered pension scheme. The transfer of an asset (for nil consideration) is undoubtedly a ‘contribution’ but is it a contribution ‘paid’? If not does it make any difference if the asset is transferred to discharge a pre-existing money debt? I will suggest below that it does make a difference and the Upper Tribunal (UT) was wrong in HMRC v SippchoiceLtd [2020] UKUT 149 to hold otherwise. To distinguish the two types of in specie contribution I refer to the former as ‘asset contributions’ and the latter as ‘discharge contributions’.
The background to the case
The facts in Sippchoice can be simply stated. An individual agreed to contribute £68 324 to a SIPP...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
