Pension protection

28 September 2010

Issue: 4274 / Categories: Forum & Feedback

A UK-resident client has his lifetime allowance primary and enhanced protection in place, but is now a member of his new employer’s non-UK approved pension scheme. The employer contributes monthly premiums of over £18,000

A UK-resident client changed employer at the end of 2008 with his lifetime allowance primary and enhanced protection in place confirmed by the former employer and HMRC.

Subsequently he became a member of his new employer’s international retirement plan (a non-UK approved scheme) with his employer contributing monthly premiums at a rate of over £18 000 (say £220 000 p.a.) from early 2009. My questions are as follows.

First will this have any effect on the present protection with the UK scheme?

Secondly assuming a special annual allowance charge is applicable to this international retirement plan as the client’s income is well over £150 000 p.a. is there a need to look back at contributions made from 2006/07 to calculate a charge or as the contributions are paid monthly starting in January 2009 is the £220 000 protected from the special annual allowance...

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