Call us on 0300 123 1047

HMRC plans may help to avoid fixed protection losses

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 protection.   

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.

Read More

Share with:
Contact us

There are a number of ways to contact us.

We regret, however, that we are unable to accept visitors at our office.

0300 123 1047
or email us

Web chat
Talk to a pensions expert live now
This web chat service is available Monday to Friday (9am to 5pm) and Tuesdays (7pm to 9pm)