RPSM03105190 - Technical Pages: Protecting pension rights from tax charges: Lump sums: Enhanced protection: Notification

Lump sum rights that exceed £375,000 and enhanced protection: notification

[Paras 27 & 29 Sch 36] [Regs 4 & 10 The Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 - SI 2006/131]

Protection will be available for lump sum rights of more than £375,000 for individuals who notify HMRC that they intend to rely on enhanced protection for their pension rights. The total lump sum rights will be those at 5 April 2006 as explained on RPSM03105040 to RPSM03105100.

When individuals notify HMRC of their pension rights, they should also give details of their lump sum rights. The HMRC form APSS 200 - Protection of Existing Rights sets out the details required. The form is available from the HMRC website (www.hmrc.gov.uk). The form can be printed out, completed and sent to HMRC in paper form.

HMRC will issue a certificate confirming enhanced protection. This certificate will also show the percentage of the value of total benefits coming into payment that can be paid as a pension commencement lump sum.

Where this form of lump sum protection applies, it takes precedence over the form of lump sum protection that allows a scheme to pay a lump sum greater than 25% of the value of a member’s benefits coming into payment under the scheme.