Definition of contribution paid to pension scheme

In 2016 C made an in specie contribution of ordinary shares to a Sippchoice bespoke self-invested personal pension (SIPP). Sippchoice claimed income tax relief at source on the contribution. HMRC refused the claim. The issue was whether the contribution into the SIPP had been ‘paid’ within the meaning of FA 2004 s 188(2).

Allowing the taxpayer’s appeal the First-tier Tribunal agreed that the transfer of shares was in satisfaction of money debts. Further the expression ‘contributions paid in s 188(1) was wide enough to cover such a transfer.

HMRC appealed.

The Upper Tribunal agreed with HMRC. The judges accepted that ‘viewed in isolation’ paid was broad enough to include non-monetary payments. However as past case law showed context was ‘key’. In this instance paid must be construed in the context of FA 2004 Pt 4 ch 4 as ‘paid in money’. Had parliament...