Freedom Sipp wound up in High Court

Freedom Sipp has been wound up in the High Court today for failing to pay tax, leaving its clients with a £66 million tax bill.

HM Revenue & Customs brought the case against the Sipp provider, and the High Court ruling follows a number of Financial Services Authority (FSA) actions over Freedom Sipp.

The FSA said it supported the HMRC move against Freedom Sipp, which voluntarily closed to new business in September 2008, and that it was in the best interest of scheme members for Freedom Sipp to be placed in the hands of a liquidator.

It is thought that HMRC will now de-register the scheme, triggering a 40% tax charge on the assets, as of February the scheme held £165 million of assets and had 350 customers.

Those in the scheme have been able to transfer out since the problems with the company began but those that are left in the Freedom Sipp are likely to be hit with the tax bill.