In Sippchoice v HMRC [2018] UKFTT 122 (10 March 2018) the FTT found that a contribution in kind to a self-invested pension plan (SIPP) was a payment which gave rise to an income tax deduction.
Mr Carlton had made an in specie contribution of ordinary shares to a Sippchoice bespoke SIPP. Sippchoice had then claimed relief from income tax at source in respect of the contribution but the claim had been denied by HMRC. The issue was whether the contribution into the SIPP had been ‘paid’ within the meaning of FA 2004 s 188(2) and therefore qualified for relief from income tax at source.
The FTT firstly observed that Mr Carlton had been under a legal obligation to make the contribution as a result of completing the contribution form (as contemplated by the trust’s constituting documents). The FTT also noted that HMRC’s guidance (contained in its Pensions Manual para...
