Pension scheme charge

The appellant taxpayer had been a pensioneer trustee until the new pensions regime began on 6 April 2006 known as A-day. Trustees were replaced by FA 2004 s 270 which required a pension scheme to have an administrator who was responsible for discharging certain functions.

The appellant – a chartered accountant and chartered tax adviser – acted as such for about 100 different schemes believing he was not as exposed to the burdens and potential liabilities as had been the case as a trustee.

He advised a company in June 2006 to set up a pension scheme. The firm made a £600 000 contribution to the scheme bank account; the scheme paid £100 000 to the business two months later. The appellant was unaware of event and of his reporting requirements.

The scheme trustees – the company’s three directors – intended the payment to be a...