Criminals are exploiting confusion over upcoming changes to inheritance tax (IHT) rules by offering fake schemes to move pension savings overseas, according to a warning from Standard Life. From April 2027, money left in defined contribution pensions will be included in estates for IHT purposes, prompting fraudsters to target savers with offers of a 'safe haven' to avoid the tax.
Donna Walsh from Standard Life said: 'With these changes, people become uncertain and a little bit confused around what they can do, what will and will not happen. And that’s exactly the type of conditions that scammers are set to exploit.' The scams often begin with unsolicited emails, calls, or messages offering free pension reviews or high-return investments, typically overseas.
Common phrases used by scammers include 'pension liberation', 'loan', 'loophole', 'savings advance', 'one-off investment', and 'cashback', according to The Pensions Regulator. Fraudsters apply pressure by claiming limited time to accept, and coach victims to answer provider questions designed to protect savers.
Cold calling about pensions is illegal, so any unsolicited approaches should be treated with suspicion. The Financial Conduct Authority provides an online tool to check if a company is authorised, and the MoneyHelper service can help find a regulated financial adviser. Mike Ambery of Standard Life advised: 'What’s important is not to be rushed into action – especially if someone is pushing a “quick fix”, or playing on fear.'
Anyone who suspects a scam should report it to Action Fraud.
