UK's rich exploit pension loophole - papers 16 June

Within a few years the loophole could cost the exchequer hundreds of millions of pounds as increasing numbers of retirees with large pension pots escape paying UK tax rates on their pension income. Under new pension rules, which took effect in April 2006, wealthy pensioners are able to transfer their retirement pot overseas and after five years they can convert their fund into cash, often tax-free. The Isle of Man, Guernsey and Jersey appear on an approved list of destinations for UK pension transfers, alongside Switzerland, Australia and New Zealand. Ministers, who have so far resisted c...