TaxAdministrationFreedom pension battle wards off tax charge

Freedom pension battle wards off tax charge

Members can leave stricken Freedom SIPP without paying 40% charges

Lawyers have headed off a 40% tax charge against investors in a pension
scheme under threat of being wound up by HM Revenue & Customs.

Investors in the Freedom SIPP were in court on Thursday to challenge a
winding up order brought by the taxman.

The 350 members of the scheme will now be permitted to transfer out of the
scheme to other pension scheme without footing the tax bill which was estimated
at £66m.

Members of the scheme are not entirely out of the words. Lawyers anticipate
more legal action against the Freedom trustees forcing them to allow members to
move on.

HMRC began action against Freedom over an unpaid VAT bill thought to have
amounted to around £150,000.

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