RPSM03201021 - Member Pages:
Protecting pension rights from tax charges: Types of protection
available: Primary protection changes
Can the level of primary protection change?
Once you have notified your right to primary protection to HMRC
your level of primary protection will not usually change. The
circumstances in which the level of your protection may change
are
- You tell HMRC (or HMRC finds out) that the information given in
your original notification form was incorrect. Your level of
protection will be changed to reflect the correct valuation of your
benefits.
- You become subject to a
pension debit as a result of a
pension sharing order following your divorce. The
value of your protected benefits will be reduced by the amount of
the pension debit. Where this brings the value of your pension
rights to £1.5 million or less you will lose your right to
primary protection.
- Your pension scheme receives compensation due to a poorly
performing investment that it owned before 6 April 2006. If certain
circumstances are met the level of your protection may be increased
to reflect the amount of this compensation.
RPSM03102050 and
RPSM03102060 give more information
on this area.
You cannot choose to give up primary protection.
