Can HMRC get at a private peneion to settle tax debt

Can HMRC get at a private peneion to settle tax...

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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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By ShirleyM
28th Mar 2013 08:34

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.

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By cmiskin
28th Mar 2013 08:44

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

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By neileg
28th Mar 2013 09:19

Perhaps an attachment of earnings order can be secured against the pension. Don't know enough about the legalities to say for sure.

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By justsotax
28th Mar 2013 09:51

not sure of the legalities

but am aware of someone who has a deduction from state pension (living abroad) for CSA....

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By halblackburn
02nd Apr 2013 14:31

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.

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