Upper Tribunal confirms HMRC’s power to issue assessments under TMA 1970 regarding pension scheme unauthorised payments (Trachtenberg v Revenue and Customs Commissioners)
Pensions analysis: Mr Trachtenburg (‘A’) appealed against the decision of the FTT, upholding HMRC’s assessments under section 29 of the Taxes Management Act 1970 (TMA 1970), charging him to income tax under sections 208 and 209 of the Finance Act 2004 (FA 2004). The sole issue was whether HMRC have power to issue assessments under TMA 1970, s 29. A contended: First, that the pension provisions in FA 2004 were comprehensive, the TMA 1970 does not enable HMRC to assess in the in the absence of any express application by FA 2004, s 255 or regulations issued under it, put beyond doubt by section 255(3)(b), which states that regulations under section 255 ‘may…provide for the application of any provision of the Tax Acts (with or without modification)’, unnecessary words otherwise; and Parliament had left it to HMRC to implement the necessary regulations, but they had failed to do so. Second, that TMA 1970, s 29 did not apply to income tax under FA 2004, ss 208 and 209, which did not charge income tax ‘for a year of assessment’. The Upper Tribunal (UT) rejected these arguments and dismissed the appeal. Written by Rebecca Murray, barrister at Devereux Chambers.