I received the article below yesterday from Southbank Investment. It was published by Nick O’Connor and I feel it is something that needs to be shared with you.
The lack of thought, care and understanding shown by H M Revenue & Customs really took me back. Have a read:
HMRC have won a battle to tax 40% of a now dead woman’s estate, simply because she transferred her money from one pension fund to another as part of her divorce.
Why were they able to do this? Because the woman in question was terminally ill. In fact, she died a few weeks later, and her presumably grieving sons then had to fight a few years’ worth of court battles.
It’s worth mentioning, of course, that the amount of money didn’t change. Nor did she gain any additional bonuses as a result of the transfer.
She simply wanted to move the money so her husband – whom she was divorcing – couldn’t access it.
And the taxman leapt at the chance to take 40%, which says a lot.