HMRC are reportedly withholding millions of pounds of tax relief from pension savers who have made ‘in specie’ pension contributions; the contribution of non-cash assets to a pension scheme, which might for example include commercial property, shares, and more esoteric assets such as intellectual property.
It seems that HMRC are concerned that some pension scheme administrators have not followed proper processes in dealing with such contributions and that perhaps some excessive tax relief claims have been made in recent years.
It has been reported that HMRC has refused tax relief claims from up to 26 pension scheme administrators; the majority of UK pension providers who accept non-cash contributions, typically into SIPPs and SSASs.
If you have any questions about pensions tax relief, please call David Nash, Partner on 01788 539000.