Call for clarity on Protected Rights transfer rule

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Hornbuckle Mitchell has called on the Department for Work and Pensions (DWP) to clarify its ‘proportionality' rules in relation to Protected Rights transfers.

The firm says advisers should be wary of transferring Protected Rights into a SIPP if their client has already begun receiving benefits. Hornbuckle claims the current rules appear to state that a client who has already begun receiving benefits from their Protected Rights will also be forced to take benefits from their SIPP when they transfer. Mary Steward, marketing director at Hornbuckle, says the confusion has arisen due to proportionality rules that are meant to safeguard ring-fenced Protected Rights cash depletion before the rest of the fund. “If benefits have been taken from a Pr...

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