Legal proceedings linked to a series of high profile police raids targeting suspected ‘pension liberation’ schemes are due to commence in London’s High Court today.
‘Pension liberation’ has been of increasing concern to the UK authorities over the past 18 months, with the FCA, HMRC and The Pensions Regulator all warning consumers of significant risks.
Under such arrangements, individuals are encouraged to transfer to schemes in the expectation of getting early access to their pension fund (before the minimum retirement age of 55), either by way of a loan or some other form of cash inducement.
However, such payments are likely to be in breach of the rules governing occupational pension schemes and can expose members to potentially significant tax charges.
In May, City of London police carried out a series of raids on organisations accused of involvement in such schemes. Dalriada Trustees Ltd has been appointed as an independent trustee to assume responsibility for the day-to-day management of a number of these suspected liberation schemes. To read more about Dalriada’s involvement in this high-profile court case to determine whether pension liberation schemes are illegal Click here.