Focus 113 – In-specie Contributions

HMRC loses case regarding In-specie Contributions 

You may have seen recent articles in the financial press detailing the decision of the First Tier Tribunal in the dispute between H M Revenue and Customs (HMRC) and a SIPP provider, in which HMRC have been told to allow pension tax relief at source on in-specie contributions.

Despite the ruling HMRC have stated “The current rules will continue to apply until we are satisfied that the litigation process is complete”.  HMRC are considering whether to appeal.

Whilst we welcome the ruling made by this tribunal, given HMRC’s stated position and the prospect of an appeal, until such time as HMRC formally acknowledge the legitimacy of in-specie contributions we believe it is prudent to maintain our stance of not permitting this type of contribution.

 Should you have any queries regarding this please feel free to contact us:

 Business Development Team

David Bonneywell, Director, 07771 986 539

Michael Hurley, London, 07826 067 563

James Cannon, North West, 07539 121 220

Gemma Fenton, Wales/South West, 07940 254 064