Summary

A loan to the taxpayer arising from a pension liberation scheme resulted in an unauthorised payment surcharge, and a discovery assessment was validly made in respect of it.

Background

In August 2012, the appellant received the offer of a loan from a company (BF). The appellant was in financial difficulty following ill health and readily accepted. In September 2012, the appellant was offered a loan of £11,650 on normal commercial terms. The appellant and his wife signed the paperwork to accept the loan sometime between December 2012 and January 2013.

In a phone call shortly after the initial call in August 2012, the appellant was asked about his pension arrangements. It was recommended that he transfer one of his pensions to a pensions company (FPL). It was never