The Pensions Scams Industry Group (PSIG), established in 2014 to help protect pension scheme members from scams, has launched a petition to change how HMRC treats pension and investment fraud victims.

In particular, the petition seeks “justice” for historical victims of pension and investment fraud, who, according to PSIG, have suffered from significant loss of retirement savings as well as “punitive” tax charges.

The group explained that many victims of fraudulent pension schemes have received tax bills of up to tens of thousands of pounds, with some facing "punitive" demands for a 55 per cent tax on the total sum they put into the failed investments.

In November, MPs and peers in the All-Party Parliamentary Group on investment fraud called for the tax authority to change its approach to the issue, arguing that HMRC was “persecuting victims” instead of holding scheme promoters to account.

PSIG chair, Margaret Snowdon, described the situation as a “significant failure” in oversight and protection.

“For years, we have worked closely with victims of pensions liberation schemes - individuals misled into transferring their hard-earned savings into fraudulent schemes," she stated.

“If losing their savings, and the associated trauma, wasn’t bad enough, these victims have been subject to tax charges of 55 per cent spanning over a decade. This is a gross injustice, and it is crucial that our tax policies and legislation change to better reflect the current realities of pension fraud and its impact.”

According to Action Fraud data, pension fraud is on the rise once again, with 559 reports of pension fraud in 2023, resulting in huge losses of £17,750,635.

Snowdon said it’s a “profound disappointment” that a petition is needed to address this injustice.

“This has been a long fight for PSIG, and we pursue it relentlessly for the victims of this terrible crime," she continued.

"We are now asking our industry friends to please join us in asking for change by signing and sharing this petition to raise awareness, advocate for stronger protection and put right the injustice suffered by historic victims of pensions and investment scams. If we can reach 10,000 signatures it will force a debate at Westminster and a chance of change.

“Fraud has a devastating, often irreversible, impact on not only individuals but their whole families; they deserve our support.”

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