The UK's tax authority is stepping up its scrutiny of pension funds amid concerns over people being enticed into cashing in their pension early.
Pension liberation schemes encourage people to access their pension savings before the age of 55. These schemes will no longer be automatically registered to receive funds when an online form is received by HM Revenue and Customs (HMRC). Now the details will be scrutinised before they can operate. "The changes to our process are part of a government-wide initiative involving HMRC and other agencies aiming to detect, disrupt and deter promoters of pension liberation schemes and to ensure that individuals are aware of the true tax position," a spokesman for the tax authority said. "The vast majority of pension funds abide by their legal obligations but we won't hesitate to de-register a pension scheme where rules are not adhered to."....Read more here