Avoid pension review fraud and pension liberation scams

You CANNOT unlock your pension before age 55

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Don’t be drawn in by a company promising to give you access to your pension before the age of 55. This is rarely possible unless you’re terminally ill/have a serious illness preventing you from continuing your normal occupation or you’re a member of a scheme with a protected retirement age from before the 2006 ‘A Day’ rule changes. 

Know what classes as a legitimate pension scheme

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Only a pension recognised by HMRC will be eligible for tax relief; if you shift your money into an investment scheme not recognised as a pension plan, there could be tax charges. 

Know the penalties for accessing your pension early!

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If you try to liberate your pension before the age of 55 without having been diagnosed as seriously/terminally ill (or being a member of a scheme with a younger protected retirement age) you’ll incur a hefty 55% tax charge because HMRC will class it as an ‘unauthorised payment’ 

Stay away from products such as store pods, car parks, carbon credits, etc;

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From wine and diamonds to holiday resorts, store pods and car parks, these products promise high returns, often “guaranteed” for the first years and a further “developer buyback option” effective after a certain period of time. However, the investments do not always work out. And the word “guarantee” is often used in the loosest sense, leaving the investors stranded with a low yielding product they can’t sell to get their money back. Stay away if you are not sure!

Our IFAs will not allow investing in the following

Our IFAs will not allow investing in certain assets that may incur tax charges, including residential property and other esoteric investments such as

  • Residential Property
  • Wasting Assets
  • Direct or indirect investment in sporting animals
  • Tangible, movable assets (art, antiques and fine wines)
  • Unquoted shares
  • Unregulated Collective Investment Schemes (UCIS) or their near equivalents
  • Contracts for Differences (CFDs)
  • Loans to third parties (including Peer to Peer lending)
  • Forex Trading Investing in Store Pods or Storage Spaces
  • Investing in Car Parks
  • Investing in Gambling or Lottery products 
  • Investing in Global Forestry Investments
  • Investing in Farmlands
  • Investing in Carbon Credits
  • Investing in Tax Avoidance Schemes

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