No relief at source for in specie contributions

The taxpayer was a registered provider of self-invested personal pensions (SIPPs) and also acted as scheme administrator. It allowed individuals to make contributions to their SIPP in money form or by shares ie in specie.

It claimed relief at source on these contributions but HMRC refused claims for in specie contributions. It said that the expression ‘contributions paid’ in FA 2004 s 188(1) was restricted to money and could not include non-monetary assets. The department referred to the Upper Tribunal decision in CRC v Sippchoice [2020] STC 1331 which confirmed its view.

The taxpayer suggested that ‘contributions paid’ could include in specie contributions but the First-tier Tribunal did not accept this saying the Upper Tribunal had found that the legislation made a ‘very clear distinction between monetary consideration and in specie contributions’.

The taxpayer also claimed that a discovery assessment cannot be made when a return is...