Regulation  

HMRC admits fixed protection application problems

HM Revenue and Customs admit there were problems with application form APSS228, which has to be filled in by those wanting fixed protection for their pension pots.

HMRC has stated problems with application form APSS228 are now resolved and more advice has been offered on applying online for fixed protection 2014.

With the impending reduction in the standard lifetime allowance on 6 April 2014, HMRC has introduced two forms of protection.

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Fixed protection 2014 will work in the same way as fixed protection 2012 except that the individual’s lifetime allowance will be fixed at £1.5m. No benefit accrual is permitted after 5 April 2014 and applications must be with HMRC by that date.

Individual protection will allow contributions to be made after 5 April 2014 without the loss of protection. It will be available where pension benefits are valued at £1.25m or more on 5 April 2014 and provides an individual lifetime allowance of the value at that date capped at £1.5m.

Individual protection will shelter the fund value as at 5 April 2014 but the final rules for how this type of protection will work have yet to be published.

HMRC stated if you are submitting multiple online applications from the same email address you should allow 15 to 20 minutes between each application in order to receive your auto-acknowledgment for each application.

If multiple applications are submitted too quickly, HMRC warned it is likely that you will only get one acknowledgment.