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21 February 2008
Issue: 7309 / Categories: Legal News , Public , Tax , Community care
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Taxing Matters

PENSION SCHEMES—IN SPECIE CONTRIBUTIONS

The recent case of Irving v HMRC [2008] EWCA Civ 6, [2008] All ER (D) 178 (Jan) was concerned with the tax treatment of a contribution by Mr Irving’s employer to an unapproved retirement benefit scheme. The employer paid £200,000 to a personal asset management company which it applied in the acquisition of shares in various companies on behalf of the employer. The shares were subsequently transferred by way of contribution to the pension scheme.

HMRC said that the transfer to the pension scheme represented taxable or earnings from Mr Irving. He disagreed, because the charging provision of TA 1988, s 595 applies where an employer “pays a sum” into an unapproved retirement scheme and this was not the payment of a sum but a transfer of non cash assets.

The High Court said that the phrase “pays a sum” included the transfer of non cash assets; it said that a distinction between these two funding methods made no commercial sense and could not reflect any legislative policy. I don’t know why not. The distinction seems to reflect the underlying legislative policy relating to the remittance basis where it is well established that a sum means a sum of money and not a non cash asset. And what about a company purchasing its own shares where “payment” means money, and so on? What happened to the idea about not doing violence to the words of the statute

Issue: 7309 / Categories: Legal News , Public , Tax , Community care
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MOVERS & SHAKERS

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott strengthens Birmingham private client team with double appointment

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

NEWS
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
Artificial intelligence does not demand a wholesale rewrite of liability law, argues an article challenging claims that new technology has created an accountability gap
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
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