16 June 2008
Experts have warned that savers with pension pots over
£1.5m (the lifetime allowance at 6 April 2006) valued at the
5 April 2006 may be leaving it late to register the excess with HM
Revenue & Customs (HMRC) under 'Primary Protection.' The
deadline for registering excess savings is 5 April 2009, but Watson
Wyatt has highlighted the need to allow plenty of time as pension
providers have proven to be slow to respond to requests for
information and HMRC has already returned several forms for
containing insufficient information.
Any unregistered pension savings over the lifetime allowance
after the deadline will be subject to 55% tax.
