RPSM03102010 - Technical Pages: Protecting pension rights from tax charges: Primary protection: Notification

Notification

[Para 7 Sch 36] [The Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 – SI 2006/131]

Individuals with rights valued at 5 April 2006 of over £1.5m can protect these rights from the lifetime allowance charge when these rights come into payment (crystallise) after 5 April 2006.

Rights are pension rights plus any separate lump sum rights. Such lump sum rights usually occur in public sector pension schemes. Lump sums by commutation of pension form part of an individual’s pension rights - they are not separate lump sum rights.

Where an individual dies having registered for primary protection and a lump sum death benefit is paid the value of primary protection may need to be re-calculated, see RPSM03109000.

To claim primary protection, an individual must notify HMRC of their intention to rely on this protection. The notification must be made on form APSS 200 - Protection of Existing Rights which must reach HMRC on or before 5 April 2009. Notifications cannot be made before 6 April 2006. 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. Alternatively, from a date to be announced, it will be possible for forms to be completed and submitted to HMRC online.

On receipt of the form, HMRC will process the form and will issue a certificate with a unique reference number giving details of the enhanced lifetime allowance to the individual.

RPSM03100500 gives more information on the notification process.