P Browne v HMRC 595

Cathya Djanogly

In P Browne v HMRC 595 [2016] FTT 595 (17 August 2016) the FTT quashed surcharges on unauthorised payments by a pension fund.

Mr Browne appealed against unauthorised payment charges and surcharges (made under FA 2004 ss 208 and 209) arising in respect of his receipt of funds from his Pearl Assurance and Scottish Life pension plans into his personal bank account. Mr Browne had subsequently invested both amounts into a self-invested personal pension plan (SIPP) and contended that no unauthorised payment had therefore been made.

The FTT observed that the payments must be regarded as unauthorised payments unless they were ‘recognised transfers’ under FA 2004 s 164(1)(c) which covered sums held for the purpose of one pension scheme which became held for the purpose of another. As recognised transfers could not have an intermediate stage the payments to Mr Browne were not recognised transfers. Furthermore ...

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