Falling foul of the rules

In 2001 Mr Kent transferred £55,354 from two approved personal pension schemes to the Holme Limited Pension Plan, a HMRC approved occupational pension scheme. It was clear that both personal pension schemes permitted transfers to approved occupational schemes. HMRC was of the view that Holme Limited and the Holme Limited Pension Plan had been established to achieve pension fund liberation (or pension busting). HMRC believed that the scheme operators persuaded persons who wished to realise their pension funds before retirement age to become sham employees of Holme Limited. The employee wo...