HMRC rejects 98 pension scheme applications

2094965_HMRC-HM-Revenue-Customs-700x450HM Revenue & Customs has rejected 98 of the 1,400 applications to register new pension schemes it received over the last six months.

According to an HMRC newsletter, the 1,400 applications filed between 6 April and 30 September was a 42 per cent decrease on the number of applications received in the same period in 2015.

Of the received applications 82 per cent have been approved, 7 per cent refused and the rest await a decision.

Since the pension freedoms, HMRC has also kept its eye on recognised overseas pension schemes, and has removed thousands of schemes from its list which allowed individuals to access their funds before age 55.

In the newsletter HMRC said that it had now created new overseas pension schemes page on its website so that managers and members can keep track of the UK pension tax rules.

It also noted the government’s recent decision to scrap the second hand annuities market.

The newsletter reads: “The government has taken this decision as it has become clear that the necessary conditions for a competitive market could not be balanced with sufficient consumer protections. HMRC would like to thank stakeholders for their very helpful contributions to the consultation on the proposed tax framework.”