Pension schemes could be approved by the Inland Revenue (now HM Revenue and Customs) until 2006. Approved status carried tax advantages, but was subject to certain restrictions on the form in which benefits were taken. Approval was withdrawn if the scheme ceased to qualify, and a tax charge of 40% applied to the value of scheme assets immediately before cessation of approval.
On 19 April 2000, the Revenue notified the administrator of the appellant pension scheme that approval was withdrawn (under ICTA 1988, s 591B(1)) from 5 November 1996. On 27 July 2000, the administrator was assessed (under ICTA 1988, s 591C) for the tax year 2000/01.
The taxpayer appealed against the assessments, on the ground that the tax should have been assessed for the tax year 1996/97, when the scheme ceased to be eligible and withdrawal of approval took effect under the Revenue’s notice. However, the First-tier Tribunal (FTT), Upper
