Using same provider for SIPP and ISA

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Lance replied

30 January 2020, 11:00
Originally posted by ladymuck View Post

Rather than bank statement references, could an investigator ask to look at the pension statement and validate the value of the pension?

I guess they could, but would they dig that deep?
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ladymuck replied

30 January 2020, 10:56
Rather than bank statement references, could an investigator ask to look at the pension statement and validate the value of the pension?
Leave a comment:
Lance replied

30 January 2020, 10:46
Originally posted by Jog On View Post

Is this allowed?

No. That's the point of the question. I know it's illegal, but the likelehood of getting caught seems very low.
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Jog On replied

30 January 2020, 10:39
Originally posted by Lance View Post

I setup an ISA with BigFundCo and pay £20k in now, and £20k in April, and put it in the accounts as SIPP pension.

Is this allowed?
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Lance replied

30 January 2020, 10:36
Originally posted by SimonMac View Post

You assume the transactions on the bank statements would both be the same?

they'd be broadly similar I believe.
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SimonMac replied

30 January 2020, 10:27
Originally posted by Lance View Post

Posted in general as this is an idea that I am not suggesting. Just a thought experiment.

Suppose I use BigFundCo for my SIPP. Into which I have historically paid company money, avoiding CT.
Suppose I am going inside IR35 in April, with a different client. And will close the company. The company has £50k

Scenario
I setup an ISA with BigFundCo and pay £20k in now, and £20k in April, and put it in the accounts as SIPP pension.
The bank statement will say payment to BigFundCo reference xxxxxxxx.
Then close the company taking the last £10k as CG and pay no tax on that.
Thet take the £40k out of the ISA and trouser it (or leave it there as I choose)
Other than the fact it's probably illegal what are the flaws?

It would take a very detailed investigaton to uncover the fact that the payments have gone to a different reference number. Is there any specific checks that providers do to prevent this? I've not seen any.

Or is this something that people already do and keep very quiet about?

You assume the transactions on the bank statements would both be the same?
Leave a comment:
Lance started a topic Using same provider for SIPP and ISA

30 January 2020, 10:26
Using same provider for SIPP and ISA

Posted in general as this is an idea that I am not suggesting. Just a thought experiment.

Suppose I use BigFundCo for my SIPP. Into which I have historically paid company money, avoiding CT.
Suppose I am going inside IR35 in April, with a different client. And will close the company. The company has £50k

Scenario
I setup an ISA with BigFundCo and pay £20k in now, and £20k in April, and put it in the accounts as SIPP pension.
The bank statement will say payment to BigFundCo reference xxxxxxxx.
Then close the company taking the last £10k as CG and pay no tax on that.
Thet take the £40k out of the ISA and trouser it (or leave it there as I choose)
Other than the fact it's probably illegal what are the flaws?

It would take a very detailed investigaton to uncover the fact that the payments have gone to a different reference number. Is there any specific checks that providers do to prevent this? I've not seen any.

Or is this something that people already do and keep very quiet about?
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