RPSM03100020 - Technical Pages: Protecting pre 6/4/06 pension rights from tax charges: Overview

Overview of protection for benefit rights built up before 6 April 2006

Protection ensures that pension rights built up before 6 April 2006 will not, in specified circumstances, be subject to tax under the simplified regime that would not have applied if the regime in place on 5 April 2006 had continued unchanged.

Protection will cover pension rights held in tax approved retirement benefit schemes, personal pension schemes, retirement annuity contracts and annuity contracts. Protection will allow pension rights to come into payment from 6 April 2006 where the amount, form or timing of the payment would otherwise trigger a tax charge under the rules of the new pension system.