Late fixed protection applications

In August 2015 the taxpayers applied for fixed protection of their lifetime allowances. This was after the closing date of 6 April 2012 (Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations SI 2011/1752 reg 4). The reason for the delay was that they were under the impression from their adviser that they already had enhanced protection although it later became clear this was not the case. HMRC refused the late claim for fixed protection and the taxpayers appealed.

Part of the dispute concerned the scope of the First-tier Tribunal’s jurisdiction on appeals concerning HMRC’s refusal to accept late application for fixed protection. The taxpayers said the tribunal had a supervisory jurisdiction but HMRC said it was limited to deciding whether the department was entitled to take the view the notice did not satisfy the regulations.

The tribunal found its jurisdiction to be supervisory but in exercising that jurisdiction...