17 May 2012
HM Revenue & Customs is planning a retrospective power in
the Finance Bill to protect people against the loss of pension
fixed protection. Read more about fixed protection here.
The annual allowance for tax-privileged pension saving was cut
from £255,000 to £50,000 from April 2011. The lifetime
allowance was also reduced from £1.8m to £1.5m from
April this year. Read more about Inland Revenue limits here.
Savers had until April 5 to apply for fixed protection to retain
the £1.8m lifetime allowance. Anyone who does not have fixed
protection will see savings above £1.5m taxed at 55 per cent
unless they have registered for primary or enhanced
An HMRC spokesman says: "A regulation-making power will be
introduced to allow changes to be made to the fixed protection
legislation. This new power is intended to allow regulations to be
made to help prevent an individual losing fixed protection in
certain specific circumstances."
Further details are not yet available.