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HMRC bolsters crackdown on pension unlocking with new team
by Daniel Grote on Jan 16, 2013 at 12:16
HM Revenue & Customs (HMRC) has bolstered its clampdown on pension unlocking schemes with the launch of a new team focused on the practice.
HMRC said in a statement it had launched a counter fraud and avoidance team to tackle pension unlocking schemes.
'Companies offering [pension unlocking schemes] are potentially landing clients with serious problems down the line because pension "liberation" payments are not intended by tax law and so could have serious tax consequences for both individuals and companies involved,' it said.
'In addition the fees charged mean those using these schemes risk financial loss on top of repaying the tax relief.'
The High Court ruled in December 2011 that schemes allowing savers to access their pension funds before reaching age 55 were illegal.
The Financial Services Authority has also issued warnings to consumers about firms offering such services.
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