The basic premise on contributions made to pensions is that once the money has gone in, you can’t get it out again until you reach retirement age (or earlier ill health or death). There are very few circumstances when exceptions can be made, and if a refund is made other than as permitted by HMRC, then it would be classed as an unauthorised payment with charges totalling up to 70% of the amount refunded.
Pension withdrawals continued to soar in the third quarter of 2018 leading to suggestions that some pensions savers are treating their pensions like bank accounts, dipping in to withdraw cash when they need it.
A record £2.3bn was taken out of pensions pots under Pension Freedoms rules in the second quarter of 2018, HMRC figures have revealed.
Royal London director of policy Steve Webb has called for an end to what he called the “absurd” way pension withdrawals are taxed.
HMRC has taken down a web page, which allows users to check how much money they can put into a pension, after “blunders” were spotted by tax experts at Royal London.
Sipp experts have warned that a provider’s legal triumph in its battle with HMRC over in specie contributions is “not the end of the story”.
A Sipp provider has won its legal battle with HMRC over in-specie contributions.
Royal London’s director of policy Steve Webb, a former pension minister, believes that HMRC is “out of control” when it comes to over-taxing savers using pensions income withdrawal or buying a second home.
The government has introduce a second finance bill today which will reinstate many of the changes delayed before the general election, including the MPAA cut which is back-dated to April.
James Hay is fighting an HMRC charge of nearly £2million in connection with a probe into a non-standard investment.
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