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Revenue asks ABI to help halt turbo-chargers

The Revenue has asked the ABI for help after admitting it has made no progress in finding a way of preventing people recycling tax-free cash back into their pensions.

The practice, called turbo-charging, enables people to rake in extra tax relief.

The industry universally condemned Chancellor Gordon Brown for introducing a measure to ban this practice in his pre-Budget report without any guidance on how it can be policed.

As a result, industry commentators confirm that the Revenue has been struggling to find a solution and is relying on ABI members to find a practical answer.

Scottish Life head of pensions strategy Steve Bee says current thinking is to make IFAs police the sector and tell the Revenue of any instance of turbo-charging. This would put an additional burden on IFAs.

An HMRC spokesman says: “HMRC can confirm that the situation remains as announ-ced in the pre-Budget report. We are hoping to publish draft legislation and guidance on this soon and at that point we will be inviting comments from the ABI and other interested parties.”

Informed Choice managing director Nick Bamford says: “This is the equivalent to a policeman asking a burglar how to stop him from thieving. I think the ABI should tell the Revenue that they made this mess and they should sort it out themselves.”


Turnover rises by 28% for Sumus

Falcon Group holding company Sumus has announced a 28 per cent increase in turnover for the first quarter of its financial year from 2.6m to 3.3m. The firm now has 133 advisers and says it is reviewing acquisition opportunities.

Anxiety attack

Financial advisers must take some responsibility for the lack of desire to close the pension and protection gaps

Tory fears over advice

Conservative MPs say that problems over the funding of advice and the regulatory framework of the NPSS need to be addressed if consensus is to be reached on pension reform. Speaking ahead of a Parliamentary debate on pensions, Tory Shadow minister for work and pensions Nigel Waterson says Turner’s recommendation for an advice-free NPSS model […]

Industry given chance to review FSA performance

The Financial Services Practitioner Panel is preparing to launch the first stage of its 2006 survey of regulated firms to obtain an industry assessment of the performance of the FSA. The survey, which is carried out every two years, will be released later this year.Issues that emerged from the 2004 survey included the ever increasing […]

Time to stop the salami slicing on tax relief

Steve Webb  – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]


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