IFAs must review their clients' enhanced pension protection to see if they could benefit from switching to the new fixed protection, Hornbuckle Mitchell says.
Enhanced protection became available after A-Day in 2006, when the lifetime allowance (LTA) for pension contributions became £1.8m. It protected investors whose pension funds may exceed £1.8m through investment growth from punitive tax charges, on the condition they made no more contributions. However, some investors could revoke their enhanced protection, make more contributions and then reapply for fixed protection, Stewart Dick, head of sales at Hornbuckle said. "There is now a window for some of those with enhanced protection but funds worth less than £1.8 million to revoke it,...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes