New guidance (and application forms) has become available from HMRC, on the morning of 12 August 2013, both for Fixed Protection from 2014 (must be applied for before 05 April 2014, if required) and for the plans for Individual Protection 2014, which can only be applied for after the start of the new tax year 2014/2015.
A link to this is available here: http://www.hmrc.gov.uk/pensionschemes/pension-savings-la.htm#5
The Member Guidance here is also useful: http://www.hmrc.gov.uk/pensionschemes/fp2014guidance.pdf
I wanted to get this information to you promptly for consideration and action, if required or needed.
In addition, the new HMRC entry on their website notes the expected (to be confirmed) outcomes of its plans for Individual Protection 2014 as follows:
As well as fixed protection 2014, the Government has announced that individual protection 2014 will be available when the lifetime allowance is reduced to £1.25 million for 2014-15. The details of individual protection 2014 will be confirmed later but it is expected that:
A link to this is available here: http://www.hmrc.gov.uk/pensionschemes/pension-savings-la.htm#5
The Member Guidance here is also useful: http://www.hmrc.gov.uk/pensionschemes/fp2014guidance.pdf
I wanted to get this information to you promptly for consideration and action, if required or needed.
In addition, the new HMRC entry on their website notes the expected (to be confirmed) outcomes of its plans for Individual Protection 2014 as follows:
As well as fixed protection 2014, the Government has announced that individual protection 2014 will be available when the lifetime allowance is reduced to £1.25 million for 2014-15. The details of individual protection 2014 will be confirmed later but it is expected that:
- it will give you a lifetime allowance equal to the value of your pension rights on 5 April 2014 - up to an overall maximum of £1.5 million.
- you will not lose individual protection 2014 by making further savings in to your pension scheme
- any pension savings in excess of your lifetime allowance will be subject to a lifetime allowance charge
You'll be able to apply for this from 6 April 2014.
You can hold both fixed protection 2014 and individual protection 2014 but you can't apply for them at the same time.
I hope the above information and the links are of interest to those that are affected by these issues.
If you would like to know more about this pension planning and your tax allowances/limits then please contact the team at Chapters Financial Limited on 01483 578800.
No individual advice has been provided in the text of this blog. You should seek bespoke financial advice in your own circumstances.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
Chapters Financial is not responsible for the content of external webpages.
You can hold both fixed protection 2014 and individual protection 2014 but you can't apply for them at the same time.
I hope the above information and the links are of interest to those that are affected by these issues.
If you would like to know more about this pension planning and your tax allowances/limits then please contact the team at Chapters Financial Limited on 01483 578800.
No individual advice has been provided in the text of this blog. You should seek bespoke financial advice in your own circumstances.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
Chapters Financial is not responsible for the content of external webpages.
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