HMRC guidance issued November 2010

HMRC has issued guidance intended to help schemes that have not so far nominated a pension input period (PIP). Under the current legislation, where no previous nomination has been made, a scheme may retrospectively unwind its PIPs back to the scheme's first PIP. Schemes may nominate their first PIP to end on 5 April 2007, aligning subsequent PIPs to the tax year. Members will be liable for any annual allowance charge that may arise as a result of the changed PIP and may claim repayment of any overpaid annual allowance charge. Schemes must advise members if they nominate a PIP to end on a date other than the scheme anniversary. The guidance points out that any retrospective nominations must be made before the new tax legislation comes into force, following which retrospective nominations will no longer be permitted.