HMRC, the tax man and pension providers have all expressed concern that pension liberation scammers may now be using offshore schemes for their swindle, regardless of whether the saver lives overseas or not.
A QROPS is a platform for those who either currently live overseas or plan to within the next 12 months. It offers benefits unable to be matched in the UK in terms of tax-efficiency, investment control and flexibility, plus a choice of currency to enable avoidance of the volatility of the exchange rate.
A QROPS isn’t an option for someone residing in the UK or with no plans to leave, yet liberation companies are taking pension funds and placing them into these schemes with the promise of early access, larger lump sums, and 100% tax-free access come April.
Penalties
In return for this dubious advice, a typical liberation adviser will be taking somewhere between 20% – 30% of the fund upfront as a fee, and in most cases when HMRC catches up with the illegitimate transfer, a further 55% of the fund will be deducted as a penalty.
Liberation companies are using overseas schemes now as the door is more or less closed in the UK for new pensions which look like liberation models.
If a pension adviser gets in touch with you, and they mention overseas pension schemes as a potentially beneficial option, you must be aware that unless you reside overseas or plan to, this is not an option for you.
If you wish to speak to a QROPS adviser with legitimate experience, and free, honest, impartial advice on whether a QROPS is a suitable option for you, contact us here.
About John Cassidy
