A 70-year-old pensioner faced a "Kafkaesque" nightmare and had his life savings of £350,000 frozen for months due to a minor administrative error made by HM Revenue and Customs (HMRC).
The Transfer Blocked by a Typo
Steve Bentley, who owns an aviation services business in Bulgaria, attempted to move his private pension to a scheme in Belgium operated by KBC Group, starting the process in August 2025. However, his pension provider, Curtis Banks, blocked the transfer because of a discrepancy on an official HMRC list.
The fund he wished to move his money to was correctly named 'Voluntary Pension Fund UBB'. Yet, on HMRC's public list of Recognised Overseas Pension Schemes (ROPS), it was incorrectly listed as simply 'Pension Fund UBB'. This minor omission of the word 'Voluntary' created a major bureaucratic impasse.
A 'Kafkaesque' Bureaucratic Standoff
Mr Bentley described the immense stress of having such a significant sum locked away, stating the freeze was caused by "bureaucratic incompetence". Although HMRC corrected the error on its website by 17 November 2025, the resolution was not straightforward.
Curtis Banks, adhering strictly to its due diligence procedures, demanded a formal letter from HMRC confirming the change. However, HMRC does not issue such letters, directing providers instead to the 'updated' section of its online ROPS list. This left Mr Bentley trapped in a catch-22 situation, unable to satisfy his provider's requirements despite the public correction.
Resolution and Apologies
The deadlock was only broken after intervention by the financial news site This is Money. Curtis Banks subsequently agreed to expedite the transfer, confirming it had been completed.
The pension provider stated: "The safety of our customers’ pensions is our top priority... While our usual process is to obtain written documentation, in view of the delays caused by HMRC, we expedited this once we saw the required change on their website." The firm added that its investigation was concluding and it would offer a goodwill payment for the distress and inconvenience caused.
An HMRC spokesperson apologised for the listing error and confirmed the date it was rectified. They reiterated that the list is a tool for pension administrators and that they do not provide confirmation letters for updates made to it.
This case highlights the vulnerability of savers to administrative errors and the complex safeguards in the pension transfer system, which can sometimes prevent legitimate transactions.
