We have recently heard of a pensions scam that is being investigated by the Inland Revenue and is thought to currently involve 6 companies. One of these is believed to be in Liverpool.
Apparently, redundant people are persuaded to transfer their pension fund away from their previous employer into a new employer's fake pension scheme. Once the transfer has gone ahead the funds are all taken out in cash. Up to 25% of the fund might be taken in cash by the so-called adviser and the rest of the cash goes to the person whose pension fund was transferred.
The process breaks UK tax laws as only a certain amount from a pension can be taken in cash. If the Inland Revenue catch up with the person taking most of their pension fund in cash they could get slapped with a 40% tax charge on the whole fund that was transferred.
If you are thinking of transferring your pensions, make sure your adviser is fully qualified and you know exactly where your fund is going. As always, if it sounds too good to be true, it generally is!
has special permission from the industry regulator, the Financial Services Authority, to offer advice on the complex area of Pensions Transfers as we have a number of staff with the required G60 Pensions qualification.
If you would like help or advice please do contact us.