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Killick and Co LLP v HMRC

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Contributions “in specie” do not attract relief

Case. Killick and Co LLP (K) is a provider and administrator of self-invested pension schemes. Where personal cash contributions are paid into these plans by the members, K recovers relief at source from HMRC in the usual way, e.g. a cash contribution of £800 attracts relief of £200, meaning the gross contribution is £1,000. K also permits contributions in specie, i.e. the plans can receive value by contributions of assets (shares in this case). K claimed that relief should apply to in specie contributions as well as cash ones.

Law.S.188(1) Finance Act 2004 permits relief for contributions paid to be claimed other than in a number of cases, including where an employer makes the contribution. HMRC pointed to a previous decision that considered the meaning of the term “contributions paid”.

Decision. The Tribunal agreed with HMRC, stating that the previous (binding) decision found a clear distinction between monetary consideration and in specie contributions. The appeal was dismissed.