HMRC v Bella Figura Ltd

In HMRC v Bella Figura Ltd [2020] UKUT 120 (TC) (20 April) the Upper Tribunal considered a number of complex issues relating to the power to assess tax chargeable as a result of a loan made by a pension scheme.

BFL was the sponsoring employer and scheme administrator of a registered pension scheme (BFPS). BFPS made a loan of £200 000 to F Ltd a company connected with BFL. It was common ground that the loan was an unauthorised payment under FA 2004 s 160(4) and a scheme chargeable payment under FA 2004 s 241. The result was that BFL was liable as scheme administrator to a scheme sanction charge and in its capacity as sponsoring employer to an unauthorised payments charge and an unauthorised payments surcharge.

The UT had to consider three issues. The first issue was whether HMRC had the power...