RPSM03100060 - Technical Pages: Protecting pre 6/4/06 pension rights from tax charges: Overview: Enhanced & primary protection

Enhanced protection with primary protection

Individuals with pension rights valued at more than £1.5 million on 5 April 2006 may notify HMRC that they wish to claim both enhanced protection and primary protection. If they do so, the claim for enhanced protection will take precedence. Their protection will operate on an enhanced protection basis until it is lost.

When enhanced protection ceases, their protection will default to primary protection for benefit crystallisation events after enhanced protection is lost. In some circumstances primary protection will apply to the benefit crystallisation event which causes enhanced protection to be lost.