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HMRC pension investigation

class action - does anyone know anything?

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My new client is buying a company which has an ongoing HMRC investigation into a payment that was made to it from their pension fund. 

Apparently HMRC are chasing a class action against 1000s of companies for tax etc on what they deem to be illegal payments from the pension fund; I'm suprised that I've not heard anything about this case. We're awaiting further info from the seller, but does anyone know anything about this class action?


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By Accountant A
05th Jul 2019 14:22

Not something I've heard but not surprised a pension fund making payments to a sponsoring employer (other than bona fide recharges, etc.) attracts attention.

HMRC wouldn't be taking a "class action" would they? I thought class actions were the other way round, as it were.

Any clue as to what payments are involved?

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By PBH64
05th Jul 2019 14:23

HMRC don't do class actions. There may be a test case that shares characteristics with others but it's a case by case basis. You could be thinking of HMRC vs SIPPChoice but that's in specie contributions and doesn't fit your description. If it's an employer loan from the scheme then that could be an unauthorised payment if it's not in line with s179 FA 2004

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By Vaughan Blake1
05th Jul 2019 15:04

Not heard of this, could it be the garbled version of a loan charge issue?

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By atleastisoundknowledgable...
09th Jul 2019 10:42

Ok, bit of an update ... (and AA you're correct - class action is the other way around).

HMRC have issued protective assessments for income tax @ 40% and Unauthorised Pension Payment surcharge @ 15% on a large number of companies who received money from self admin pension schemes run by Morgan Lloyd Trustees Ltd. HMRC have agreed to defer the tax charge until after a class case - organised by Morgan Lloyd - disputing the charges, has been decided.

Would I be correct in assuming that if HMRC win (no doubt at CoA), they'll levy a 100% penalty on the grounds of not being particular helpful in their investigation?

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