HMRC launches online only pension lifetime allowance claims

From 31 July 2016, pension scheme members will have to apply to protect their pension savings from the lifetime allowance tax charge through a dedicated online service as the tax authority withdraws the current paper option

This service replaces the interim paper process for applying for fixed protection 2016 (FP2016) and individual protection 2016 (IP2016) and replaces the online form for applying for individual protection 2014 (IP2014).

The standard lifetime allowance was reduced to £1m from 6 April 2016 from the 2014 £1.25m limit.

From now on, members who want to apply for lifetime allowance protection will have to do so online. 

To apply members will need an HMRC Online Services account. To create an account, or to login to an existing one, go to HMRC services: sign in or register

As this is an online service, members will no longer receive paper certificates with their lifetime allowance protection details. Instead they will be able to view their protection details online and they will be able to print their protection details as necessary.

Any applications made after the 31 July 2016 using the interim paper process will be returned and members will be told to make their application online.

HMRC has confirmed that ‘members with permanent protection notification numbers will not need to reapply online and will be able to view details of their protection in their HMRC Online Services account’.

HMRC has issued more guidance to help members who want to apply for lifetime allowance protection, including a new guide for members on valuing their pensions for IP2014 and IP2016.

For those scheme members who are unable to use the online service a Monday to Friday pensions helpline is available at tel: 0300 123 1079, outside UK: 44 (0) 300 123 1079.

The Pension schemes newsletter 80 – July 2016 is available here.

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