Sippchoice and Bayonet Ventures: HMRC’s misguided approach to pension schemes

In Sippchoice Ltd, HMRC denied tax relief in respect of in specie contributions to a registered pension scheme, notwithstanding the taxpayer acting in accordance with HMRC’s published guidance. In Bayonet Ventures LLP, HMRC considered that it had the power unilaterally to appoint a scheme administrator of a registered pension scheme, and that a loan from the scheme to an LLP should be properly analysed as a loan to the members of the LLP. Both decisions reflect poorly on HMRC and suggest a rather careless attitude towards litigation.