High earners with pension savings of £1.8m have just two and half weeks to apply for fixed protection or face a tax charge of £165,000, a law firm has warned.
On 6 April the lifetime allowance for tax-efficient pension saving will be cut from £1.8m to £1.5m. High earners have been given the option to apply for fixed protection - meaning their pension pot will not be subject to tax charges after the change. However, all further pension saving in registered pension schemes must stop. Hogan Lovells partner Jane Samsworth explained anyone can apply to HM Revenue & Customs (HMRC) for fixed protection - unless he or she already has 'enhanced' or 'primary protection' - but it is likely mainly to benefit individuals with pension savings worth more ...
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