Hornbuckle SIPP (PO-11755 and PO-11754)

Ombudsman’s Determination

Outcome

The Applicants’ complaint against Hornbuckle is partly upheld, but there is a part of the complaint I do not agree with. To put matters right (for the part that is upheld) Hornbuckle should pay any penalties imposed by HMRC on the SIPP. Hornbuckle should also award £500 to each of the Applicants to recognise the significant distress and inconvenience caused by its maladministration.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Due to an oversight by Hornbuckle, details on a property held within the SIPP were omitted from VAT return submissions for a period of four years, between 2011 and 2015. The mistake has resulted in a total tax charge on the SIPP of £15,520, which the Applicants have said Hornbuckle is liable to pay. The Applicants have also said they have concerns about Hornbuckle’s compliance with Client Asset Sourcebook (CASS) regulations.