Robert Waterson, a lawyer representing around 120 ROSIIP investors who are part of a Group Litigation Order formed last year, said he was aware more investors have been sent “assessments to tax” from HM Revenue & Customs asking for a payment of up to 55% of the value of their transferred pension.
The charge comprises tax of up to 40% and a 15% surcharge, although it should be noted these charges will be made against the transfer value of the pension and that interest could also be charged.
Waterson said he would urge anyone who has received an assessment to tax from HMRC, or have clients that have, to contact him at Hage Aaronson (Waterson began representing the group when he was at Dorsey & Whitney) immediately so he can ensure their rights are protected.
The Recognised Overseas Self Invested International Pensions Retirement Trust (Singapore) (ROSIIP) was stripped of its QROPS status in May 2008 after HMRC deemed it did not meet the requirements at the time it was registered. Because of the Revenue’s decision, investors who used the ROSIIP QROPS between 2007 and 2008, which was promoted by a company called Panthera, could now face the “unauthorised payment” charge.
ROSIIP trustee, Equity Trust (now TMF Trustees), has since fought a legal battle with HMRC over whether or not QROPS status should have been removed, but have so far lost at each stage. Most recently in March last year when it lost an appeal against a High Court ruling which found in favour of HMRC in May 2011.
The investor’s Group Litigation Order was granted by the High Court in June last year. As part of the High Court’s decision to grant the GLO, HMRC was required to provide a summary of the case so far – to view this click here.
The full case will be heard at the High Court during the week commencing 17 June 2013.
