HM Revenue & Customs took too long to complete a discovery assessment on expats who had invested in a Latvia-based international pensions scheme, originally listed as a Qrops but later struck off, according to a decision by a First Tier Tribunal judge.
The UK tax office claimed the Wenns International Pension Scheme was “not a qualifying recognised overseas pension scheme” and levied unauthorised payments charges which four savers in the scheme challenged in the tribunal hearing.
Gerrard Gordon, Gary Connell, Nicolo Martin and Ian Hills, who were all members of the scheme, appealed against the late discovery assessment.
The Wenn International Pension Scheme was listed as a Qrops in 2009 and delisted in 2010 after failing qualifying tests set by HMRC.
The delisting led to the four appellants receiving the full value of their Qrops as unauthorised pension payments.
HMRC claims that the transfers gave rise to unauthorised payments charges and unauthorised payments surcharges on each of the appellants under s208 and s209 of the Finance Act 2004 because Wenns was not a Qrops.
In her summing up statement, tribunal judge Sarah Falk said: “Were the discoveries stale? We think they were. A delay from mid-2011 to March or April 2014 is around three years, and we think that is too long for the discovery to retain its ‘essential newness.”
