Check eligibility for overpaid stamp duty on SSAS or SIPP pension

A common strategy for pensions (SSAS and SIPP) has been for business owners to transfer their commercial premises into the pension. This is tax efficient, leaving the pension with an appreciating asset as well as rental income from the business to grow its investment over time.

However, solicitors acting for the SIPPs and SSASs have been mis-advising their clients that Stamp Duty is due on the transfer as a matter of course.

In fact, in many cases, no Stamp Duty is due at all, and we have over 150 clients who have made such payments, and have recovered them, averaging at around £26,000 per reclaim.

HMRC have confirmed, in the Press no less, that this is the case in certain circumstances.

As this error has been consistently made since 2007 there are, according to our rough projections, up to 30,000 pensions affected and this means that there are £Billions in wrongly paid Stamp Duty!

It doesn’t matter whether you are a small retailer, architect, engineer, dentist, vet or orprofessionalfirm, it’s highly likely that this error will have cost you tens or even hundreds of thousands of pounds. If you sold or “in specie” transferred your trade premises to your pension, then you are more than likely affected.

The 3 situations for Pension Scheme Errors 

It should be stressed that these diagrams only apply to pensions schemes but also apply if the transaction is in either direction. They also apply to other non-pension “connected parties”transactions.  Under the relevant rules there will be a complete disregard of any payment made for the properties in these circumstances whether it be by cash, assumption or satisfaction of debt, or any other form of valuable consideration e.g. exchange of property, non-monetary assets, shares, securities, etc.

A Quick Check is to look for the following situations: 

The basic rule is if there is more than one seller/contributor or more than one buyer/fund member then it is highly likely that no Stamp Duty was due. 

If you think you are affected by this error please contact us using the form below.  Our advisers will be able to assist you in determining whether you are due a refund, and in claiming any monies due to your Pension Scheme.  Alternatively, you can call us direct on 0333 305 0954 or email us at newbusiness@ctatax.uk.com