Please Help; IFA mistake results in huge tax bill pending
Discussion
Hi All, I have a major problem, and would appreciate some input.
A substantial withdrawal from an off-shore policy was done on the basis of a single withdrawal, rather than a segment surrender. The result is a tax bill of over £70,000 as opposed to £2,400. The authority to do the single withdrawal was given to the off-shore company by an admin clerk at my IFA without reference to the principle, let alone myself (he has now left to become a holiday rep..). The company took his fax telling them to proceed as sufficient authority, no-one else at the IFA was aware he had done this. Any advice would be appreciated. (All the money placed off-shore had already had UK tax paid upon it, for anyone who may regard this as a tax dodge that went wrong. It was done for higher interest rates but fortunately it didn't go to Iceland!). Thanks in advance.
A substantial withdrawal from an off-shore policy was done on the basis of a single withdrawal, rather than a segment surrender. The result is a tax bill of over £70,000 as opposed to £2,400. The authority to do the single withdrawal was given to the off-shore company by an admin clerk at my IFA without reference to the principle, let alone myself (he has now left to become a holiday rep..). The company took his fax telling them to proceed as sufficient authority, no-one else at the IFA was aware he had done this. Any advice would be appreciated. (All the money placed off-shore had already had UK tax paid upon it, for anyone who may regard this as a tax dodge that went wrong. It was done for higher interest rates but fortunately it didn't go to Iceland!). Thanks in advance.
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