Following the freezing of the lifetime allowance (LTA) and the annual allowance (AA) at their 2010/11 levels for the following 5 tax years, protection may be relevant for many more individuals who have a pension fund worth more than £1.8 million and those who make an annual contribution higher than £255,000 to a registered pension scheme. If individuals take benefits or pay in contributions in excess of these allowances, tax penalties will apply (of 55 per cent to the LTA and 40 per cent to the AA).

The deadline for notification to HMRC is 5 April 2009 but as this falls on a Sunday, and HMRC may take up to 15 working days to return “unacceptable” notifications for re-submission, notifications should actually be submitted to HMRC well in advance of that date.

View the guidance.