Expensive liberation

Unauthorised payment surcharge

The taxpayers a married couple were directors of Biz-Works UK Ltd which provided bridging finance and short-term loans to professional property investors. They met a regulated broker who worked with a firm of independent financial advisers registered with the Financial Conduct Authority and entered into an arrangement allowing them to use their pension funds to provide loans to their business. This involved transferring their pensions to a new scheme from which the loans would be made.

The taxpayers did not receive any paperwork about the fee structure nor did they receive copies of the documents they had signed authorising the transfer of their pensions or the loans to be received by their company. In December 2011 February 2012 and March 2012 three loans less fees were paid to the taxpayers’ company by lenders controlled by the scheme promoter.

HMRC said...