UK - The Treasury's legal battle with 19 schemes over foreign income dividends will be resolved in the European Court, lawyers close to the case believe.
The High Court has given the BT Pension Scheme, Universities Superannuation Scheme, Coal Pension Trustees and 16 other schemes leave to pursue a class action lawsuit against the Treasury for £100m, which the schemes say belongs to them.
The case centres on the Inland Revenue’s treatment of foreign income dividends, which were part of the tax regime between 1994 and 1997. During that period, schemes could claim back tax credits on the dividends that UK companies paid to investors. The tax credits were worth up to 25% of the dividends paid.
At the same time, if a company earned most of its revenues outside of the UK, it could pay a foreign income dividend.
However, schemes that held foreign income dividends were not entitled to tax credits, a practice they say effectively discouraged foreign investment and therefore contravened EU legislation.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers