HMRC has made changes to strengthen existing processes that deal with pension scheme registrations and transfer requests to stop people from cashing out of their pension schemes through early pension liberation. These changes will take immediate effect.

This is a response to increased pension liberation activity, where pension savers are targeted by unscrupulous companies encouraging them to access their pension savings early, which has put the integrity of the tax relief afforded to pension savings at risk.

In a departure from the 'process now, check later' approach, scheme registration will no longer be confirmed on successful submission of the online form. This will enable HMRC to conduct detailed risk assessment activity before making a decision on whether or not to register a scheme.

In addition, the process for responding to requests for confirmation of the registration status of the receiving scheme has been revised. HMRC will now respond to requests for confirmation of the registration status without seeking consent from the receiving scheme. However, HMRC will only provide confirmation where the receiving scheme is registered and the information held by HMRC does not indicate a significant risk that the scheme was set up, or is being used, to facilitate pension liberation.

Where HMRC cannot provide confirmation, they will issue a response setting out the conditions in which they will confirm registration status and explain which conditions have not been satisfied.

HMRC says it will continue to raise the profile of the dangers of pension liberation to deter individuals from cashing in their pension.

More details are available from HMRC