Expat Life

savings If you are thinking about releasing your pension funds early. Think again or you could face a huge tax bill.

Thousands of expats have fallen victim to ‘pension liberation' scams which has seen them lose their pensions and their dreams.

One victim has spoken of the extreme stress he is under now he is facing a tax bill of up to £300,000. Airline pilot Jeremy Donaghy-Sutton, 51, says that even though he never took a loan from his transferred scheme, the taxman is chasing him to pay a penalty, and his dreams of retiring early have gone up in smoke.

Thousands of savers who used 'pension liberation schemes' to access pension cash under age 55 are being chased by HM Revenue and Customs (HMRC). Many of the schemes were illegal scams as those aged under 55 are not allowed to release their pension unless they are in ill health. Millions of pounds were stolen by the scammers, who promised savers schemes and tax loopholes to withdraw and invest their pensions before the age of 55. The victims are being told in letters sent by HMRC that they must repay up to 55 per cent of the amount withdrawn. HMRC says it has no power to waive tax charges even when someone has been the victim of a scam.Read Jeremy's sad story here

Read Jeremy's sad story here