Loan or payment

Charge on unauthorised payment from pension scheme

The taxpayer had been a member of the British Airways pension scheme. After a meeting with SKW Investments he transferred his pension into a self-invested personal pension (SIPP).

He then contacted another SIPP provider Rowanmoor Pensions stating that he wished to invest in a SIPP with some of it to be invested in Imperium. Rowanmoor agreed but had reservations about Imperium. It told the taxpayer that Imperium was permitted to make loans and ‘under no circumstances could this company or any company connected with it make a loan to you personally or any company connected to you as this would be classed as a “back-to-back loan” made to contravene the lending restrictions on SIPPs’. As a result Rowanmoor would require a signed declaration from the taxpayer that neither he nor any company with which he was associated...