UK - Workers are being barred from paying over £300m into their pensions every year by prohibitive tax rules on cross-border pension funds, new research shows.
And more than 50,000 British nationals who are currently working in Europe could be affected.
The problems stem from the fact that British workers are not able to get tax relief on UK pension contributions above £3600 per year made when they are working abroad. And they are usually unable to contribute to foreign schemes as they do not work abroad for a sufficient time.
Accountancy and tax advisory firm Mazars is calling on EU members to recognise pension funds based throughout the community and to agree on a common system.
Tax director Rodney Taylor said: “It is intolerable that in a European single market UK workers who spend part of their careers in other member states are losing out on their pensions. They should not be penalised in this way, but encouraged to make adequate provision for their retirement.
“The European Court of Justice is heralding the way to a single market for funded pensions and member states should fall into line as soon as possible.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.