Advisers should consider recommending fixed protection to clients who have already started drawing their pension pot, SIPP provider Suffolk Life said.
Her Majesty's Revenue and Customs (HMRC) opened applications for fixed protection in August. Applications must be completed before April 2012. Suffolk Life analysts have pointed out the protection, which currently shields pension pots from punitive tax charges up to £1.8m provided investors stop making contributions, is not just for clients who have yet to crystalise any of their fund. There is more than one test of a pension pot against the lifetime allowance (LTA), the provider warned. First, the fund is tested against the LTA when the client enters drawdown and takes their tax f...
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