A residential property purchased by a company’s pension scheme and occupied by some of the company’s employees as a condition of their employment was not ‘taxable property’, as it was used in connection with business premises held as an investment.
The appellant company operated a plastic recycling and processing business. In October 2006, the appellant’s small self-administered pension scheme purchased a three-bedroom semi-detached house approximately a mile from the factory and yard of one of the appellant’s sites.
The property was purchased to provide living accommodation for Polish employees who were working in the yard, as the appellant had found it difficult to find accommodation for them. A number of the Polish employees lived there as a term of their employment contracts.
HM Revenue and Customs (HMRC) assessed scheme sanction charges on the
