Summary 

Unauthorised payments charge and surcharge assessments were set aside on the basis that they were out of time, as carelessness by the sponsoring employer company was not proven, but a scheme sanction charge was a valid assessment. 

Background 

A company (BFL) was both the sponsoring employer and scheme administrator of a registered pension scheme (BFPS). BFPS made a loan of £200,000 to a company (F). 

It was common ground that the loan was an unauthorised employer payment (within FA 2004, s 160(4)) and a scheme chargeable payment (within FA 2004, s 241), with the result that BFL was liable (as scheme administrator) to a scheme sanction charge (under s 239(2)) and (as sponsoring employer) to an unauthorised payments charge (under s 208(2)(c)) and an unauthorised payments surcharge (under s 209(3)(c)).  

BFL appealed against the decision of HM Revenue and