Let's say a taxpayer has a £1m tax bill and instead of paying this simply moves abroad and rufuses to correspond (and pay) with HMRC. He has no UK assets other than a large private pension producing circa £80k a year (paid in to a foreign bank acc)
Can HMRC do anything to stop the £80k going to the indiviual?
Many thanks
Replies (5)
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I'm not sure
I don't know the legal aspects, but if someone owed me £1m I would be trying hard to get hold of that pension to repay some of the debt owed.
MARD
The was a mention in the Budget that HMRC are going to look at increasing use of charging orders, this could prove to be relevant - charge over pension? In the meantime HMRC may be able to ask the foreign jurisdiction to collect the debt under the mutual assistance provisions in the relevant tax treaty - see http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM560000.htm
Perhaps an attachment of earnings order can be secured against the pension. Don't know enough about the legalities to say for sure.
not sure of the legalities
but am aware of someone who has a deduction from state pension (living abroad) for CSA....
Does PAYE apply to the pension ?
... if so, then HMRC might be able to issue a large K code and deduct up to 50% of the gross pension.