Enhanced protection forms published by Her Majesty's Revenue and Customs (HMRC) are causing confusion among scheme members and advisers.
The problem seems to be arising over Form APSS 200 and the terms in the explanation notes of “relevant benefit accrual” and the definition of what constitutes an “active” member. Specifically question 3.1 on the form asks if you have been an “active” member, and if the answer is yes, this means you can’t have enhanced protection. But when you read the explanation notes an “active” member is one who achieves “relevant benefit accrual”. According to Rachel Vahey, head of pensions development at Scottish Equitable, where the confusion lies, is that under the enhanced protection rules, if y...
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