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Pensions Consultants at Broadstone Corporate Benefits have praised HMRC for starting to take positive steps to address the problem of pension liberation schemes but say more is still to be done.
Broadstone is concerned at the ease at which some pension liberation schemes appear to have met HMRC's registration criteria. Pensions minister Steve Webb revealed earlier this week that an estimated £420m had been transferred through pension liberation schemes.
HMRC has said it will tighten its rules on registration of such schemes and will now confirm to schemes whether the proposed receiving scheme is registered (or not) and if so, whether there is a risk that the scheme is being used for liberation purposes. The aim is to flag up an transfers which are of concern and which may be covers for 'pension liberation.'
John Newman, pensions director at Broadstone, said: "This is a step in the right direction. However, what Trustees want is the reassurance that if they take HMRC's information and rely on it will they be protected if that information was not correct?"
Mr Newman continued: "The costs of verifying and investigating these schemes is not insignificant but if the process can be simplified to a one-off check with HMRC. This would greatly ease the burden on Trustees and provide reassurance that they have acted appropriately. Can HMRC expand on this publicly for the benefit of all schemes?"
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