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18 May 2009
Pension Schemes Newsletter 37 clarification
In their recently published Pension Schemes Newsletter 37, HMRC agreed that, in principle, a renegotiation carried out on commercial terms by a pension scheme will not give rise to unauthorised payment charges.
This might happen when a scheme has leased property to a connected party and needs to renegotiate the terms of the lease: either to recognise that the lessee might be in financial difficulty, or because the property market is such that a lower rent might now be negotiated.
The Revenue says, however, that it expects evidence to be kept showing that dealings with connected tenants are conducted in the same way as those with unconnected tenants.
