Confusing protection application forms published by Her Majesty's Revenue and Customs (HMRC) has resulted in nearly a third of applications being rejected, according to the latest newsletter from the department.
HMRC says one of the main reasons behind the large number of rejections of form APSS 200, has been members are ticking “yes” to question 3.1 which asks “Have you been an ‘active’ member of a registered scheme at any time after 5 April 2006”. But the definition of what is an “active” member is what seems to be confusing many people, as the explanation notes suggests an “active” member is someone who has “relevant benefit accrual”. However, according to Rachel Vahey, head of pensions development at Scottish Equitable, under the enhanced protection rules, if you are a member of a defined b...
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