Thursday, 23 May 2013
Pension unlocking firm faces liquidation
Freedom Capital Partners Limited is likely to go into voluntary liquidation on the 11th of June at a creditors meeting, according to Insolvency News.
Freedom Capital Partners is one of the types of firms that can "release" money from your pension before you are 55 and avoid a tax charge of 55%. However, the firm has been criticized following allegations of high transfer fees.
Pensions minister Steve Webb, warned earlier this month that the government was cracking down on pension liberation companies.
He said: “The promise of easy money when times are tough is all too tempting and there are far too many unscrupulous people who will play upon this.”
You can listen to a report on Radio 4 aired in March about these pension liberation schemes. Funnily enough the report mentions Freedom Capital Partners and Lothbury Pensions Administrations. Both of these companies are now in formal insolvency proceedings.