Hogan Lovells

Key Dates

Judgment issued 1 August 2017


Loans made by a pension scheme to its sponsoring employer did not satisfy the requirements governing authorised employer loans by registered pension schemes.


The employer had taken loans from the pension scheme in 2007 and 2009. The 2007 loan was secured by a first charge against items at commercial property owned by the employer and by a second charge over the property itself. Neither charge was registered with Companies House. The 2009 loan was secured by a first charge on the items at the property and again was not registered with Companies House.

The Tribunal held that the loans did not comply with the requirement in section 179(1)(b) of the Finance Act 2004 that an authorised employer loan must be "secured by a charge which is of adequate value". The absence of priority over other charges over the company's assets meant the unregistered floating charges did not provide effective security for the loans.

Date Accessed: 28/05/2022