Sippchoice Ltd v Revenue and Customs Commissioners

Income tax – Relief. The taxpayer company had appealed against the Revenue and Customs Commissioners' decision to refuse its claim for income tax relief pursuant to s 188 of the Finance Act 2004 in circumstances where certain members of the pension scheme run by the taxpayer had made their contributions in the form of a transfer of shares. In allowing the taxpayer's appeal, the First-tier Tribunal (Tax Chamber) held that it was well established that satisfaction of a monetary obligation or debt in cash or kind amounted to 'payment'. Consequently, HMRC's assertion that the normal meaning of 'contributions paid' in s 188(1) of the Act was confined to a payment of cash, could not be accepted.

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