Second claim is abusive

The taxpayer was a UK resident who worked in the US for a bank from July 1976 to March 1998 when he retired and returned home to his home country.

He received a pension from the bank; the payments were foreign pension payments for UK tax purposes under ITEPA 2003 s 575. The taxpayer said they qualified for repayment of tax on the basis of the exemption in article 17(1)(b) of the UK/US double tax agreement. He submitted claims for 2003/04 to 2006/07.

HMRC disallowed the claims saying the payments were taxable in the UK subject to the 10% abatement in s 575 because the bank’s retirement plan was not established in the US.

The taxpayer made new claims in April 2009 for the same period without mentioning his previous attempts had been rejected.

The Revenue this time accepted the claims and made the repayment....