The Investment Fraud HMRC Campaign is calling for urgent government action to end what it describes as a two-tier justice system—one in which victims of fraud and financial abuse are handed unjust, unaffordable tax bills, while the perpetrators, enablers, and facilitators walk free, often continuing to offend without consequence.
From investment scams and pension mis-selling to cases of financial coercion within abusive relationships, victims have been left devastated—facing retrospective tax demands, interest and penalties, despite having acted in good faith or under duress.
“This is institutional injustice,” said victim representative Sue Flood. “Victims are being hit with crushing demands, while those who orchestrated the frauds are rarely investigated. Worse, many continue to operate unchecked, targeting new victims.”
Systemic Harm, Ignored Victims
HMRC is pursuing vulnerable individuals for tax liabilities arising from fraud and financial abuse they didn’t understand or control.
In some cases, the stress has triggered mental health crises, suicide attempts, bankruptcy, and homelessness.
Victims include people with mental health conditions, keyworkers, and survivors of coercive financial abuse.
A recent article in the Dorset Echo exposed a case in which a woman was penalised for undeclared income her abusive husband secretly deposited and withdrew from their joint account. Despite her lack of knowledge—and her suicide attempt during the HMRC inquiry—officials ruled she had “no reasonable excuse” and enforced penalties dating back many years.
Meanwhile, Offenders Go Unpunished
At the same time:
Advisers, scheme promoters, and financial abusers often face no enforcement or regulatory action;
Many continue trading or working in financial services, with no accountability;
The system allows repeat offending while victims bear all financial and emotional consequences.
Our Demands
The Investment Fraud HMRC Campaign is urging and the Government to:
- Suspend enforcement against historic victims of financial abuse, mis-selling and fraud;
- Investigate and hold to account those who facilitated and profited from fraudulent activities and scams;
* Embed the Victims’ Code in HMRC procedures and train staff to recognise and support vulnerable taxpayers;
* Reform tax rules and guidance so victims are not unfairly penalised for actions beyond their control;
* Introduce a fairer settlement process for historic victims, based on principles of fairness, proportionality, and affordability.
“The system must recognise the lived reality of victims. No one should be financially destroyed for something they didn’t understand, didn’t cause, and couldn’t control. We are calling for fairer, affordable outcomes—before more lives are needlessly shattered.” Carly Barnes-Short, Lawyer and Investment Fraud Commitee Co-Chair.
MEDIA AVAILABILITY
Victims, cross-party MPs, and leading experts in law, policing, and tax policy are available for interviews.
To arrange interviews or request supporting case material please contact us:
