Revenue & Customs (HMRC) has issued “spotlights” on a selection of tax avoidance activities.

HMRC’s “spotlights” highlights activities which, in its view, are not likely to have the legal effect desired by individuals who use them. HMRC says that such activities include attempts by registered pension schemes to make tax free payment to members by creating a funding surplus resulting from the member surrendering rights. According to HMRC, such payments to members are unauthorised payment and subject to tax charges.