Unauthorised payments out of registered pension schemes

Gareth Clark v HMRC [2020] EWCA Civ 204

In the recent decision of Gareth Clark v HMRC [2020] EWCA Civ 204, the Court of Appeal considered the tax charge and surcharge which, by virtue of ss208 to 210 Finance Act 2004 (FA 2004) applies to an unauthorised payment out of registered pension scheme. In particular, the question before the court was whether a transfer of legal title without beneficial title did constitute a “payment” which was subject to a tax charge. There was also an important procedural element to the decision, specifically regarding the discovery assessments regime found in the Taxes Management Act 1970 (TMA 1970).