Pension plea

Late notification for enhanced protection

The taxpayer made a late application for enhanced protection in February 2015. He said his pensions adviser had failed to calculate his pension accurately and as a result incorrectly advised that protection was not necessary. HMRC refused the late notification. The taxpayer appealed.

The First-tier Tribunal agreed that the taxpayer had a reasonable excuse until the deadline for submitting notification. Pensions are complex so it was reasonable for the taxpayer to ask a specialist for help. Further he was ill during the relevant time so it was reasonable for him to concentrate on that knowing he had appointed an adviser.

However the reasonable excuse ended in March 2014 when a new adviser told the taxpayer he should have applied for enhanced protection. A reasonable taxpayer would then have taken action either by calling his adviser or contacting HMRC for...