Pensions tax: transitional protection

Resource type: Practice note

Status: Maintained

Jurisdictions: England, Scotland, Wales

This practice note considers the transitional relief in the pensions tax regime which protects the rights that members of registered pension schemes built up before 6 April 2006. Specific areas covered include primary protection, enhanced protection, protected pension ages for those wishing to draw their benefits before age 55, lump sums exceeding 25% of the lifetime allowance and five-year lump-sum guarantees. The note also refers briefly to the fixed protection regime introduced by the Finance Act 2011, together with the new "fixed protection 2014" announced at the 2012 Autumn Statement.

Jonathan Sharp, Baker & McKenzie LLP

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Resource information

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Resource ID: 1-208-3955
Products: PLC UK Pensions, PLC UK Public Sector
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Tax and Accounting: PensionsTax and Accounting: Pensions (http://pensions.practicallaw.com/8-103-1346)

Practice note: overview

Finance Act 2011: pensions provisions: a quick guide Finance Act 2011: pensions provisions: a quick guide (http://crossborder.practicallaw.com/topic6-517-1569)
Increase in minimum pension age: a quick guide Increase in minimum pension age: a quick guide (http://crossborder.practicallaw.com/topic6-501-0915)
Money purchase pension schemes: overview Money purchase pension schemes: overview (http://crossborder.practicallaw.com/topic8-422-1664)
Pensions tax: overview Pensions tax: overview (http://crossborder.practicallaw.com/topic6-204-0440)

Practice notes

Auto-enrolment and new employer pension duties: enrolment, opting out and opting in Auto-enrolment and new employer pension duties: enrolment, opting out and opting in (http://crossborder.practicallaw.com/topic3-500-1031)
Drawdown pension arrangements Drawdown pension arrangements (http://crossborder.practicallaw.com/topic4-507-1900)
Pension schemes: benefits on retirement Pension schemes: benefits on retirement (http://crossborder.practicallaw.com/topic5-502-1740)
Pensions issues for internationally mobile employees Pensions issues for internationally mobile employees (http://crossborder.practicallaw.com/topic0-238-2974)
Pensions tax: authorised lump-sum payments Pensions tax: authorised lump-sum payments (http://crossborder.practicallaw.com/topic0-376-6607)
Pensions tax: authorised pension payments Pensions tax: authorised pension payments (http://crossborder.practicallaw.com/topic4-380-6324)
Pensions tax: fixed protection and new 2014 protections from a lifetime allowance charge Pensions tax: fixed protection and new 2014 protections from a lifetime allowance charge (http://crossborder.practicallaw.com/topic0-524-8086)
Reducing the annual and lifetime allowances for pension saving Reducing the annual and lifetime allowances for pension saving (http://crossborder.practicallaw.com/topic5-503-6633)
Restricting pensions tax relief: anti-forestalling measures Restricting pensions tax relief: anti-forestalling measures (http://crossborder.practicallaw.com/topic5-422-1726)

Standard documents

Advice to an employer about auto-enrolment and new pension duties Advice to an employer about auto-enrolment and new pension duties (http://crossborder.practicallaw.com/topic9-517-3798)
Pension scheme trust deed and rules Pension scheme trust deed and rules (http://crossborder.practicallaw.com/topic1-501-5637)

Checklists

Pension schemes: HMRC reporting requirements checklist Pension schemes: HMRC reporting requirements checklist (http://crossborder.practicallaw.com/topic0-204-0645)
Pensions tax: protected pension age flowchart Pensions tax: protected pension age flowchart (http://crossborder.practicallaw.com/topic1-210-5957)
Updating scheme rules for the Finance Act 2004: checklist Updating scheme rules for the Finance Act 2004: checklist (http://crossborder.practicallaw.com/topic8-501-0976)

Form

HMRC: form APSS 200 HMRC: form APSS 200 (http://crossborder.practicallaw.com/topic0-208-4979)

Glossary

Annual allowance Annual allowance (http://crossborder.practicallaw.com/topic6-201-6478)
Connected person Connected person (http://crossborder.practicallaw.com/topic9-107-5981)
Defined benefit (DB) pension scheme Defined benefit (DB) pension scheme (http://crossborder.practicallaw.com/topic0-107-7545)
Defined benefits lump-sum death benefit Defined benefits lump-sum death benefit (http://crossborder.practicallaw.com/topic8-204-0458)
Enhanced protection Enhanced protection (http://crossborder.practicallaw.com/topic4-204-0653)
Fixed protection Fixed protection (http://crossborder.practicallaw.com/topic6-507-1857)
HM Revenue & Customs (HMRC) HM Revenue & Customs (HMRC) (http://crossborder.practicallaw.com/topic6-200-6399)
Lifetime allowance Lifetime allowance (http://crossborder.practicallaw.com/topic8-201-6477)
Lifetime allowance charge Lifetime allowance charge (http://crossborder.practicallaw.com/topic8-507-1314)
Lifetime allowance excess lump sum Lifetime allowance excess lump sum (http://crossborder.practicallaw.com/topic1-501-1125)
Money purchase scheme Money purchase scheme (http://crossborder.practicallaw.com/topic0-107-6857)
Normal minimum pension age Normal minimum pension age (http://crossborder.practicallaw.com/topic5-204-0445)
Pension debit Pension debit (http://crossborder.practicallaw.com/topic5-205-8987)
Pension-sharing order Pension-sharing order (http://crossborder.practicallaw.com/topic4-205-8983)
Primary protection Primary protection (http://crossborder.practicallaw.com/topic4-204-0648)
Registered pension scheme Registered pension scheme (http://crossborder.practicallaw.com/topic5-201-6474)
Uncrystallised funds lump-sum death benefit Uncrystallised funds lump-sum death benefit (http://crossborder.practicallaw.com/topic2-216-2952)

Article

Pensions and internationally mobile employees: checks and balances Pensions and internationally mobile employees: checks and balances (http://crossborder.practicallaw.com/topic8-383-1190)

Legal update: archive

HMRC clarifies position on transfers for people aged 50 to 55 HMRC clarifies position on transfers for people aged 50 to 55 (http://crossborder.practicallaw.com/topic2-502-7319)

External resources

HMRC guidance on lifetime allowance protection notifications HMRC guidance on lifetime allowance protection notifications (http://crossborder.practicallaw.com/topic8-384-7370)
Registered pension schemes manual (RPSM) Registered pension schemes manual (RPSM) (http://crossborder.practicallaw.com/topic2-204-0418)

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