J&A Young (Leicester) Ltd and others (TC4771)
Was a residential property owned by a pension scheme taxable?
The company ran a small self-administered occupational pension scheme registered with HMRC. The scheme owned the yard part of the business premises of the company. It also bought a property in October 2006 in which foreign employees were able to live under the terms of their employment.
HMRC said the fund had an interest in a residential property that was taxable under FA 2004 s 174A (see also HMRC’s Registered Pension Schemes Manual at RPSM07109020).
Some types of property are excluded under Sch 29A para 10; in this case the issue turned on conditions A and B in para 10(2) and (3) respectively.
The taxpayer argued that the property was not taxable because it was a condition of employment that the employees lived there (para 10(2)(c)). Alternatively condition B applied because the property was used in connection with...
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