Rulings in favour of HMRC hike pension tax liability

Zigurds Kronbergs, tax writer at Croner-i, examines two recent pension tax cases which went against claimants, Clark at the Court of Appeal and Sippchoice at Upper Tribunal, both deemed to break pensions tax rules under Finance Act 2004

Clark v R & C Commrs [2020] BTC 4

This was an appeal made by Mr Clark against decisions of the First Tier Tribunal (FTT) ([2016] TC 05366) and Upper Tribunal ([2018] BTC 530).

The appellant was a retired businessman who was dissatisfied with the performance of his pension fund and wanted to use the funds to make personal investments.

He entered into an arrangement in which his self-invested personal pension fund (Suffolk Life SIPP) transferred the funds to a scheme (the LML scheme) established solely for him by a specially incorporated Cyprus company (LML), of which he was the only employee.

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Clark v R & C Commrs [2020] BTC 4

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