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Discovery assessment conditions were not satisfied

By Mark McLaughlin, September 2022

A loan to the taxpayer was an unauthorised member payment under the pension tax rules but HMRC was not entitled to make a discovery assessment as the conditions for making the assessment were not satisfied. 

Summary

A loan to the appellant was an unauthorised member payment under the pension tax rules but HM Revenue and Customs (HMRC) was not entitled to make a discovery assessment as the conditions for making the assessment were not satisfied.

Background

In 2012, the appellant was suffering financial difficulties and had resorted to payday loans, which she was repaying. She had been forced to pawn her engagement ring. A colleague at work recommended a financial adviser (MP) who might be able to help. The appellant met with MP and he reviewed her financial position. MP arranged a loan for her of £20,000 from a business (BF). 

MP also recommended that she move her

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