UK - Tax rule changes will increase the risk of "trust busting" and money laundering at small self-administered schemes. trustees warn.
They say plans outlined in the Inland Revenue’s second consultation document on pension tax simplification will leave SSASs open to fraud.
And the Association of Pensioneer Trustees – which represents about 280 people in the UK – believes the plans could lead to the demise of SSASs and some self-invested personal pensions.
Chairman John Bradley said: “If you don’t have a professional overseeing these schemes, they will be abused. The risks are high because members can make high risk investments or run away with a tax-free lump sum. If that happens, the government will do away with them entirely.”
At least one Inland Revenue appointed pensioneer trustee must be appointed to every SSAS.
The APT will meet with the department for work and pensions and Inland Revenue in a bid to gain support for the European-instigated rule to be blocked.
Bradley said initial discussions with the Revenue indicated it may support the move because it would no longer have to take over the role of SSAS monitoring.
There are about 40,000 SSASs in the UK, usually established by up to 12 shareholding directors of private limited companies to provide relevant pension benefits for themselves.
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