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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

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
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