Press Release - HMRC targeting of victims
The APPG • 15 November 2023

HMRC targeting of victims not fraudsters must end.

***Press release under embargo until 16 November, 2023***


HMRC targeting of victims not fraudsters must end


The Investment Fraud All Parliamentary Group delivers damning evidence of the activities of HMRC


**Westminster – November 16, 2023** - Evidence unearthed by the APPG shows that HMRC is levying tax charges against investment and pension fraud victims - rather than the perpetrators of the crimes. The inquiry by an influential cross-party panel of MPs and peers has found this is leading to devastating welfare and financial issues amongst victims.


The APPG are particularly concerned by reports presented to them by clinical psychologists and heard directly from victims that HMRC are causing an acute risk of suicide, hospitalisations, loss of homes, marital breakdowns bankruptcies amongst victims already struggling to deal with life changing financial losses due to fraud.


The details are being revealed today at Parliament (Thursday 16 November) in the first inquiry report from the Investment Fraud All Party Parliamentary Group. The inquiry was set up in June 2023 to hear from victims and expert witnesses and to consider what steps should be taken to improve victim outcomes and reform the current system.


Leading lawyers and experienced investigators gave evidence to the inquiry and described the suspected frauds involved as complex, often committed by regulated advisors or professional advisors, often involving false or misleading advice and/or part of a broader suspected conspiracy to defraud. They described how this issue has had a particularly stark impact on pension savers and groups that are highly targeted by fraudsters such as sports professionals and military veterans.


Barrister Adam Richardson of 1EC Chambers commented, “These are historic suspected crimes that took place often over 10 years ago with HMRC taking action decades later against victims whilst ignoring the actual criminality and offences that have taken place. They are chasing low-hanging fruit, innocent victims of crime, whilst completely ignoring the criminals and scammers who are breaking the law. It’s draconian, completely unjust and allowing fraudsters to run riot with impunity.”


HMRC reportedly has no policy in place for dealing with victims of pension and investment fraud which tax advisors reported to the Inquiry means HMRC are operating in an inconsistent manner without accountability and without a clear route available to victims to challenge liabilities.


Expert witnesses also raised concerns that HMRC are not a signatory to the Victims Code of Practice. The inquiry also considered evidence from clinical psychologists and counsellors treating victims who reported that victims were experiencing “secondary victimisation” directly by HMRC actions themself including significant emotional and physical harm. They highlighted an acute risk to life if HMRC continues with its current strategy.


Numerous victims themselves also gave evidence of being driven to attempt suicide in addition to revealing how they had been hospitalised and suffered nervous breakdowns because of this issue.


Commenting on the report, Rick Muir, Director of the Police Foundation, an independent think tank for policing in the UK said: “This report should be taken very seriously by the government and immediate action must be taken. Investment scams can have terrible human consequences. Tackling these threats is being insufficiently prioritised within both policing and HMRC and much more needs to be done to support victims. The scandal of ‘double victimisation’ needs to end: HMRC should not be pursuing fraud victims for tax liabilities incurred as a result of the fraud.’


Caroline Nokes, MP for Southampton North and Romsey and Co-Chair of the APPG on Investment Fraud, commented: “The report makes for sober reading. Our APPG Inquiry has heard reports of a myriad of ways in which investment and pension fraud victims are being comprehensively failed in the UK right now. There appears to be no justice at all for these victims. HMRC are contributing to poor mental and physical health outcomes for victims, with barely existent policies or safeguarding. The accounts of witnesses were heart-breaking and painted a picture of misery and a total disregard for victim welfare. HMRC’s focus should be on stopping these frauds at source and holding the perpetrators responsible – not persecuting victims.”


APPG Co-Chair Alex Sobel, MP for Leeds North West added: “ The Government must now listen and put a stop to this practice and ensure a better system of protection and support for investment and fraud victims. What we have right now is a system causing great harm to victims and compounding their trauma creating a double victimisation as they are subjected to re-traumatisation and further losses by HM Revenue & Customs. That must stop. A clear, transparent policy and new codes of practice are urgently required at HMRC to ensure victims are treated appropriately. The APPG will not rest until tangible improvements are delivered”


The APPG is calling for an immediate suspension of charges against victims, an independent government review and reform at HMRC.


Sir Stephen Timms, former Treasury Minister and the current Chair of the Work and Pensions Select Committee sat on the Inquiry panel and stated: “Treasury and HMRC have important and difficult jobs to do. Its vital for all of us that they raise the revenues due, but there must be appropriate checks and safeguards, as HMRC recognises in its Charter Responsibilities. The system does not appear at present to be operating fairly towards victims of crime. Careful steps to safeguard victims have been taken in other countries, but not in the UK. With clear evidence of direct harm being caused to victims, there is a compelling case for a thorough, independent review. This inquiry supports the conclusion of the Work and Pensions Committee in its March 2021 report that HMRC must do more to support scam victims left owing large tax bills.”


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Notes :


1. For media enquiries, please contact the APPG secretariat on secretariat@investmentfraudappg.co.uk


2. Victim representatives Danny Murphy (Match of the Day Presenter representing sports professionals impacted by this issue) and Sue Flood (APPG Victim Representative and pension fraud victim representing pension victims) have kindly offered to be interviewed. Sue can also organise interviews with other victims. Please contact Sue Flood on hello@investmentfraudappg.co.uk if this is of interest. Panel members and parliamentarians are also available to be interviewed on the subject.


3. The All-Party Parliamentary Group (APPG) on Investment Fraud comprises cross-party parliamentarians and peers who share concerns about the current treatment of investment fraud victims in the UK. MPs and members of the House of Lords from all parties supporting this APPG include: Caroline Nokes (Chair), MP for Romsey & Southampton North, Conservative Party Alex Sobel (Chair), MP for Leeds North West, Labour Party Barbara Keeley, MP for Worsley & Eccles South, Labour Party Alison McGovern, MP for Wirral South, Labour Party Toby Perkins, MP for Chesterfield, Labour Party Sir Stephen Timms, MP for East Ham, Labour Party Lord Mann of Holbeck Moor Keller Postman UK Ltd (Solicitors) currently act as the secretariat to the APPG. More information about the group, including its full membership list, is available at https:// www.investmentfraudappg.co.uk


4. The current APPG Advisory Panel comprise: Carly Barnes (Chair)- Phoenix Sport and Media Group Adam Richardson - Barrister, 1 Essex Court Sue Flood - Victim Representative. Andy Agathangelou - Transparency Taskforce Margaret Snowdon OBE- The Pensions Scams Industry Group Rick Muir - The Police Foundation APPG Supporters include : The Police Foundation Tiger Law 1 Essex Court The Pensions Scams Industry Group The Transparency Taskforce St Paul’s Chambers POC Management.


6. Since the formation of the APPG, the APPG has held regular meetings at which we have had the benefit of hearing from and questioning a wide range of investment and pension fraud experts. These have included leading lawyers, former detectives and tax officials, academics, researchers and policy advisers, professional and specialist bodies as well as tax and financial advisors, clinical psychologists, counsellors and police and tax officers.


7. More information about the inquiry, is available at https://www.investmentfraudappg.co.uk/ inquiry The Conclusions drawn from evidence presented include :

• There is very little to no support for victims following investment fraud.

• Victims are struggling to navigate through a disjointed and complex system in the aftermath of fraud.

• Tax liabilities are blighting victims and are causing severe financial issues and acute mental and physical health issues and family breakdowns.

• Victims are feeling no sense of justice at all - especially from HMRC and feel they are being failed by poor investigation and prosecution rates.

• Investigators claim weak regulation and complex government backed incentive schemes have being exploited by fraudsters.

• There appears to be a significant lack of knowledge of specialist fraud knowledge within the Treasury & HMRC and victims are reporting that HMRC exhibit in practice very little empathy for victims.

• The government’s new fraud strategy launched in May this year (2023), a new Fraud Strategy : Stopping Scams and Protecting the Public, whilst welcomed, does not deal with serious complex investment and pension frauds nor tax liability issues.


9. Key Inquiry recommendations include:

- A moratorium and amnesty for historic victims to avoid foreseeable and preventable loss of life and further harm to victims;

- An independent government inquiry into this issue;

- Reform at HMRC to include prioritisation adjustment, widespread training, new guidance and the introduction of a specific unit and panel within HMRC to deal with investment and pension fraud cases;

- The introduction of new legislation to regulate HMRC’s treatment and taxation of victims;

- The introduction of a new victim welfare advocacy service.

8 August 2025
By Sue Flood When you are fighting injustice and taking on a government agency like HMRC, compassion can be hard to find. For victims of financial abuse, pension scams, and investment fraud, compassion isn’t just a nice-to-have — it’s a lifeline. And I know this because I’ve lived it. I’m one of them. Over the last several years, I’ve had the privilege — and the heartbreak — of walking alongside hundreds of victims who’ve been financially and emotionally devastated by fraud and scams. Together with two incredible women, Carly Barnes-Short and Margaret Snowdon OBE, I’ve fought to make sure these victims are seen, heard, and treated with fairness and dignity. Our campaign is not just about fixing systems. It’s about giving people hope when everything else is being taken from them. Victims from Every Walk of Life This isn’t just a story about pensions or investment schemes — it’s about people. Nurses, firemen, athletes, single mums, retired professionals. People from every walk of life who’ve fallen prey to sophisticated scams or been left high and dry by broken systems. What they share is trauma, confusion, and often shame — and far too many are suffering in silence. One of the hardest truths is that this could happen to anyone. I know that, because it happened to me. When victims come to us, they're often at breaking point — emotionally, financially, and sometimes even physically. I’ve personally taken calls from people on the brink of suicide because of HMRC. Carly has too. And I can honestly say that those late-night calls, those heartbreaking conversations, are what fuel this campaign more than anything else. Carly Barnes-Short: The Strategic Heartbeat It’s a privilege to work alongside Carly. As co-chair of the Investment Fraud Special Advisory Committee, she is the strategic powerhouse behind so much of what we’ve achieved — and one of the most compassionate people I’ve ever met. She was already campaigning tirelessly for victims in the world of sport when she learned about what was happening in the pensions space. Without hesitation, she stepped up to help us too — and has never looked back. Carly is the reason we’ve secured key meetings in Westminster and was the driving force behind the Investment Fraud APPG inquiry. She drafts legislation, leads events, builds relationships, and keeps the pressure on — all while juggling her legal career and family life. She's brought serious figures into the campaign like Lord Mann and Simon Myerson KC. Our MPs respect her. They listen to her. And most importantly, they act because of her. She leads much of the dialogue with government ministers and policymakers, always with empathy and professionalism, and sees every victim as a person first — not a case, not a number, but a human being in need of support and help. She stays up late and works on this with me every day. When things get overwhelming or we hit another wall, Carly finds another way forward. She never stops. Her work often goes unseen, but I see it — and I am endlessly grateful. Carly gives me the strength to keep going, especially on the hardest days. Margaret Snowdon OBE: The Voice of Integrity Margaret brings a level of experience and wisdom that gives our campaign real weight and credibility. She commands respect in every room she enters — not through volume, but through quiet authority and integrity. Margaret has been a consistent and principled voice for pension victims for many years, calling out institutional failure and championing fair treatment long before it was fashionable to do so. Her calm approach is a vital counterbalance to the raw emotion this work often brings. She reminds us that we can change the law — because she’s made it happen before. Margaret doesn’t need to shout to be heard. Her presence says everything. My Own Journey: From Victim to Campaigner I never set out to lead a campaign with Carly and Margaret. Like many others, I found myself here because I had no choice. As a fraud survivor, I’ve felt the devastation firsthand. And I couldn’t walk away knowing others were going through the same — or worse — with no one to turn to. With the help of my daughters, close friends, and an incredible group of volunteers, we’ve built a grassroots engine that powers media outreach, peer support, and public pressure. We’ve faced online abuse, institutional resistance, and days where the emotional toll is crushing. But we carry on — not for ourselves, but for the people counting on us. Behind the Scenes While much of our campaign plays out in public — in Parliament, the media, or out on the streets — so much of the real work happens behind the scenes. And I want to pay tribute to the people who help me and Carly keep this engine running day in and day out: my daughters, their close friends, and the brilliant Barry Lee Parker of Piston Design. This campaign simply wouldn’t function without them. My daughters and a small circle of trusted friends have worked tirelessly on everything from managing our social media, building content, updating the website, and keeping us organised. They’ve done this around full-time jobs, families, and their own lives — often late into the night. Together, this team has helped us not only build our online presence, but also organise vital moments like the parliamentary summit — which was a major milestone for our movement. They juggle logistics, liaise with media, and make sure that the front-line work Carly, Margaret, and I are doing can actually happen. Grassroots campaigns like ours are built on heart, hard work, and human connection. Thank you, from the bottom of my heart. What We've Achieved So Far Together, we have: Launched a parliamentary inquiry into investment fraud and unfair tax treatment Built a cross-party alliance of MPs, legal experts, and financial leaders Supported hundreds of victims with pro bono advice, peer support, and advocacy Organised the “Enough is Enough” march and secured meetings with HMRC and Treasury officials Pushed for reforms that prioritise compassion and affordability over bureaucracy But we’re not done. Despite all our hard work and support, the government isn’t listening — and until they do, we will keep fighting. We won’t stop until the Government, Treasury, and HMRC finally wake up to the reality of what victims are facing. Lives are on the line — and they need to start listening. I will keep fighting until they do. To Our Supporters: Thank You This campaign is nothing without the hundreds of people who’ve stood beside us — from MPs and journalists to volunteers and fellow victims. You’ve shown that compassion is contagious, and that together, we are stronger. Final Thoughts: Why We Keep Going People often ask how we do it. The truth is: we don’t really have a choice. Not when we know lives are at stake. This fight is about justice, yes — but it’s also really about compassion. Compassion for people we’ve never met, but whose stories have become part of us. To Carly and Margaret: thank you. For all your hard work without charge, for giving us hope, and most of all your compassion. You’re helping save lives. And to every victim out there: You are not alone. We see you. We hear you. And we won’t stop fighting for you. We are all in this together, and we have some great people behind us who really care. Compassion is not a weakness — it’s the greatest strength of all, and it means everything to victims. We just need HMRC and the Government to start showing it to our victims now too.
8 August 2025
According to media reports, HMRC is under fire for allegedly inflicting serious harm on vulnerable taxpayers—particularly those who have experienced financial abuse. Tax and business advisory firm Blick Rothenberg has raised urgent concerns over HMRC’s treatment of individuals caught in complex or abusive financial situations. Partner Fiona Fernie highlighted multiple cases where vulnerable taxpayers were subjected to prolonged inquiries, lack of empathy, and crushing penalties—even in situations where individuals were unaware of the income being questioned. It was reported that in one harrowing case, a woman whose husband secretly deposited and removed funds from their joint account was pursued for failing to notify HMRC of the income—despite having no knowledge of it. The severe stress led her to attempt suicide. Yet HMRC reportedly took months to conclude the inquiry and ruled she had "no reasonable excuse," while demanding backdated interest and penalties spanning 20 years.  “HMRC must improve their understanding of financial abuse and mental health conditions,” said Fernie. “They need to act with compassion, not further punish those who are already struggling.” Read the full article here: Dorset Echo – HMRC accused of causing undue harm to vulnerable taxpayers 🔍 Why This Matters to Our Campaign This article strongly reinforces the concerns at the heart of the Investment Fraud HMRC Campaign. Victims of investment and pension fraud are often re-traumatised by HMRC’s aggressive pursuit of tax liabilities, even when they were misled or manipulated into fraudulent schemes. This case shows the issue extends beyond investment scams—highlighting how financial abuse, mental health conditions, and institutional misunderstanding are leading to severe emotional, financial, and even life-threatening consequences for taxpayers. 📣 Our Message to the Government The Government must act now. This is not just about isolated failures—it’s a systemic issue. We are calling for: A clear, compassionate policy for victims of fraud and financial abuse HMRC to stop penalising victims and instead pursue the actual perpetrators Full alignment with the Victims’ Code of Practice Better staff training on financial abuse and vulnerability If you’ve been affected by HMRC’s treatment after being defrauded, we urge you to share your experience with us as we continue to campaign for justice and reform.