HMRC opens applications for fixed pension protection

Her Majesty’s Revenue and Customs (HMRC) last night published the application for fixed protection for the new lifetime allowance (LTA) on pension contributions.

From April 2011, the LTA on pension contributions changed from £1.8m to £1.5m. The annual allowance on contributions was also cut from £225,000 to £50,000.

Fixed protection means investors who are likely to exceed the £1.5m LTA will be protected from punitive tax charges if their fund grows up to £1.8m.

No more benefit accrual is allowed once fixed protection has been granted, and it is only available to investors who do not already have other protections such as primary or enhanced.

There is no online application facility and paper forms must be submitted by 5 April 2012.

For more information on fixed protection, click here.

Download the application form here.