PEOPLE who draw their pensions early might be liable to pay a tax charge of up to 70% following a case to be heard in the High Court this week.
The court will rule on whether schemes that allow individuals to draw up to half their pension out before the age of 55 are in breach of regulations, The Times reports.
The case, to be heard this week, involves a scheme in which members in two pension funds are encouraged to lend the money to one another. This means they are not directly drawing money from their own pension fund.
HM Revenue & Customs regulations state that early access to pensions is not allowed and could be subject to a tax penalty of up to 70%.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy