Contributions made after pension scheme fixed protection given

The taxpayer had a large main pension scheme funded by annual contributions. He also had three small schemes into which relatively modest sums were paid monthly by standing order.

His actuary recommended that he apply for fixed protection to cap his lifetime allowance at £1.8m. The taxpayer was advised that he needed to stop all further pension contributions but did not fully understand what he was told and ceased making contributions into the main scheme only. He did not cancel the smaller standing orders.

When these further payments came to light as a result of the taxpayer reviewing his affairs after receiving a diagnosis of possibly terminal cancer the standing orders were cancelled.

HMRC revoked the certificate of fixed protection because the additional pension contributions had been made.

The tribunal looked at the case ‘in the round’ and concluded that the taxpayer would not have made the additional contributions...