HMRC to protect savers hit by latest pension tax relief cut

Chancellor George Osborne announced in the 2012 Autumn Statement that from April 2014, the LTA on tax relieved pension savings will reduce from £1.5m to £1.25m, and the annual allowance (AA) will fall from £50,000 to £40,000. Osborne said at the time the government would consult on forms of protection for people whose savings are already close to or have exceeded £1.25m. In the consultation HMRC proposed two new protections: fixed protection 2014 (FP14) and individual protection. FP14 would entitle savers to an LTA of £1.5m, subject to them making no further pension contributions a...