Summary 

Income tax relief was not available to self-invested pension scheme members as contributions paid for the transfer of shares. 

Background 

The respondent pension scheme administrator company (S) claimed income tax relief at source in respect of a net contribution of £68,324 made by an individual (C) to a self-invested pension plan (SIPP) in March 2016. HM Revenue and Customs (HMRC) refused the claim (the same facts and circumstances applied to three other individuals). S appealed.  

The issue was whether the contributions made by the four members of the SIPP were ‘paid’ (within FA 2004, s 188(1)) and, therefore, qualified for tax relief. 

The First-tier Tribunal (FTT) ([2018] UKFTT 122 (TC)) considered that the parties intended to create legal relations, and there was a legally binding obligation on C to make a contribution of £68,324. This