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Liability To Unauthorised Payment Surcharge Was Just And Reasonable

By Mark McLaughlin, June 2017
Summary

The appellants’ liability to pension scheme unauthorised payment surcharges (under FA 2004, s 209) was just and reasonable in all the circumstances.

Background

The appellants (Mr and Mrs O) were both directors and 50% shareholders of a company that lent bridging finance/short-term loans to professional property investors, and also brokered loans. 

Mr O contacted an individual (JL) from a firm of independent financial advisers in response to an article in a publication about the use of a bespoke pension trust (BPT). Mr O was initially interested in introducing the BPT facility to his company’s clients and receiving introducer commissions. 

JL provided information about how the BPT worked. The arrangement broadly involved the establishment of a pension trust to accept existing pension funds; once in the trust, the
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