Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many tax rule breaches resulting from pension scams have been identified by HMRC in each of the last five years.

HMRC deals with tackling tax avoidance, evasion and other forms of non-compliance.

HMRC is responsible for pension tax relief but not for the regulation of pension schemes. Regulation is the responsibility of the Pensions Regulator and the Financial Conduct Authority.

Since 2015 individuals over 55 have been able to legally withdraw amounts from their pension pots, pay tax on the amounts withdrawn and invest the amounts however they wish. However, as the amounts withdrawn and the investment occurs outside of the pensions tax wrapper, this does not give rise to tax breaches, provided the relevant tax charges are paid.

Pension investment frauds are arguably a subset of investment frauds. Serious or complex fraud is a criminal offence and is investigated by the Serious Fraud Office (SFO). The Financial Conduct Authority (FCA), also has as one of its statutory objectives the reduction of financial crime, which includes fraud.

HMRC empathises with anyone who believes that they may have been misled about their pension investments. We will continue working closely with the Pensions Regulator and Financial Conduct Authority to tackle pension avoidance schemes.