Bayonet Ventures LLP and another v Revenue and Customs Commissioners

Income tax – Pension scheme. Applying the literal rule of statutory construction, s 863(1) of the Income Tax (Trading and Other Income) Act 2005 applied only if a limited liability partnership (LLP) was in fact carrying on a trade, professional or business with a view to profit. Consequently, the First-tier Tribunal (Tax Chamber) allowed the appeal by an LLP which was the administrator of a pension scheme and one of its members, on the basis that at the time the Revenue and Customs Commissioners had claimed that an unauthorised member payment had been made by the pension scheme to the LLP, the LLP had not been trading and had in fact been dormant. Accordingly, the unauthorised member payment charge and the attendant surcharge would be discharged.

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