Substituted beneficiary

A company set up a funded unapproved retirement benefit scheme in Guernsey in 2004 for the benefit of the taxpayer the business’s controlling director. Two properties were transferred to the scheme in 2003/04 and another was transferred in 2004/05.

The taxpayer did not declare the real estate contributions on his tax returns.

HMRC enquired into the returns and amended the figures following the decision in Irving v CRC [2008] STC 597 that transfers of assets other than cash into an unapproved scheme constituted a sum paid within the meaning of ITEPA 2003 s 386.

The taxpayer was excluded as a beneficiary of the scheme in 2010. He applied for relief under s 392 on the basis he would no longer receive benefits from the scheme. The Revenue refused.

The taxpayer appealed but HMRC applied to the First-tier Tribunal for directions striking out the appeal on the...