Can I cash in my pension?

sandraroffey

hmm. i even wrote to the chief exec and his PA replied with the same answers.

gave up at that point. but thanks for answers.

ashworthm

I was having a bbq with some friends of mine at the weekend and one of the mshared something with me which i'd like to share with you, regarding obtaining money which was invested in a final salary pension sscheme.

The scheme requires you to have a limited company, and will involve preference shares. beyond that i dont know, it was all gobbledegook to me. however my friend is being advised by a tax consultant, and this appears to be legit.

i'd welcome people's thoughts on this, mainly because i am concerned that my friend may about to be ripped off.

RichandJ

ashworthm wrote: »

I was having a bbq with some friends of mine at the weekend and one of the mshared something with me which i'd like to share with you, regarding obtaining money which was invested in a final salary pension sscheme.

The scheme requires you to have a limited company, and will involve preference shares. beyond that i dont know, it was all gobbledegook to me. however my friend is being advised by a tax consultant, and this appears to be legit.

i'd welcome people's thoughts on this, mainly because i am concerned that my friend may about to be ripped off.

I'll give you the benefit of the doubt you're not the scammer and not click Spam on this. Yet.

Scam.

Avoid like the plague.

dunstonh

i'd welcome people's thoughts on this, mainly because i am concerned that my friend may about to be ripped off.

Scam. You cant do that sort of thing legitimately. The reason these firms get away with promoting it is that it takes HMRC years to find out and by the time they find a trend, the promoting company has gone leaving the pension holder with the tax investigation and fine as well as having to put the money back.

I was told last year by a senior tax adviser that it was theoretically possible you could do it if you had a large enough fund and didnt mind skirting the edges of law and risking a battle with HMRC and as it was against the principle and intention then HMRC tend to win on those arguments. That was before the High Court ruled on pension loan schemes as being illegal which used a similar sort of process.

Most of these scams involve an overseas company. That makes it hard to prosecute the promoter. If the firm advising this are not FSA regulated then it is best to assume scam.

ashworthm

RichandJ wrote: »

I'll give you the benefit of the doubt you're not the scammer and not click Spam on this. Yet.

Scam.

Avoid like the plague.

why would you even think i am a spammer when it is quite clear that am after opinion of those on the forums so that my friend can avoid an absolute nightmare.

I shall think twice before posting again :-(

ashworthm

dunstonh wrote: »

Scam. You cant do that sort of thing legitimately. The reason these firms get away with promoting it is that it takes HMRC years to find out and by the time they find a trend, the promoting company has gone leaving the pension holder with the tax investigation and fine as well as having to put the money back.

I was told last year by a senior tax adviser that it was theoretically possible you could do it if you had a large enough fund and didnt mind skirting the edges of law and risking a battle with HMRC and as it was against the principle and intention then HMRC tend to win on those arguments. That was before the High Court ruled on pension loan schemes as being illegal which used a similar sort of process.

Most of these scams involve an overseas company. That makes it hard to prosecute the promoter. If the firm advising this are not FSA regulated then it is best to assume scam.

thankyou for your answer, i shall have a word with my friend later on. cheers

Lokolo

ashworthm wrote: »

why would you even think i am a spammer when it is quite clear that am after opinion of those on the forums so that my friend can avoid an absolute nightmare.

I shall think twice before posting again :-(

Because a lot of people sign up to post a question. Then sign up again with a new user saying "Yes you can do this, just go to this website here" and such.

So people are quite skeptical, thats all

meuk_85

Hi,

My dad has a Pension through Phoenix (previously Britannic), the value is currently only £7000 as he had totally forgot about it and isn't bothered tbh as he has another which is far greater.

He is currently 52 and will be 55 in October 2014. He asked if he could get the money out and they said he could have 25% at 55 and the remaining as Pension. Is this a good idea to take the small lump sum?

xylophone

http://www.pensionsadvisoryservice.org.uk/media/597307/spot008%20spotlight%20on%20trivial%20commutation%20detailed.pdf
might be worth a read.

jem16

meuk_85 wrote: »

He asked if he could get the money out and they said he could have 25% at 55 and the remaining as Pension. Is this a good idea to take the small lump sum?

The maximum lump sum he is allowed to take out is 25%. He will never be able to take the whole amount as cash.