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HMRC internal manual

Pensions Tax Manual

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HM Revenue & Customs
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Protection from the lifetime allowance charge: fixed protection, fixed protection 2014 and fixed protection 2016: applying for fixed protection or fixed protection 2014

Glossary PTM000001
   

How to know if HMRC has accepted an individual’s application for fixed protection (FP 2012) and fixed protection 2014 (FP 2014)
Late applications
When HMRC may revoke a certificate

An application for fixed protection (FP 2012) must have been made before 6 April 2012 (subject to the later deadline of relieved members of relieved non-UK pension shemes -see below) and an application for fixed protection 2014 (FP 2014) must have been made before 6 April 2014.  Guidance applicable to making an application for either protection, including how to make an application and what information to provide can be located on the National Archives and http://webarchive.nationalarchives.gov.uk/20140504142140/http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM11106000.htm.

In order to apply for either FP 2012 or FP 2014 the conditions that a member needed to meet were that they:

  • were a member of one or more registered pension schemes on 6 April 2012 for FP 2012 and 6 April 2014 for FP 2014 or a relieved member of one or more relieved non-UK pension schemes (see PTM113410 for definitions of a “relieved member” and a “relieved non-UK pension scheme” ),
  • did not have primary protection (see PTM092300),
  • did not have enhanced protection (see PTM092400), and
  • did not have FP 2012 when applying for FP 2014.

How to know if HMRC has accepted an individual’s application for FP 2012 or FP 2014

When HMRC received and processed the individual’s form, they will have sent them a certificate to state that they have either FP 2012 or FP 2014. The individual needs to keep this certificate safe so that they can give this information to their pension scheme(s) if they want to rely on FP 2012 or FP 2014 when they come to take their benefits.

Late applications

For guidance relating to late notifications see PTM098000.

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When HMRC may revoke a certificate

HMRC may revoke a certificate that they have issued to an individual if:

  • they have reason to believe that the individual has had benefit accrual under an arrangement under a registered pension scheme (see PTM093500);
  • there has been an impermissible transfer into an arrangement under a registered pension scheme relating to the individual;
  • a transfer of sums or assets held for the purposes of (or representing accrued rights under) any arrangement is made that is not a permitted transfer (see PTM093400);
  • an arrangement is made for the individual that is not made under permitted circumstances (see PTM093400): or
  • the individual does not meet the requirements for FP 2012 or FP 2014 because they:
  1. were not a member of a registered pension scheme on 6 April 2012 for FP 2012 or 6 April 2014 for FP 2014, or
  2. had primary protection (see PTM092300), or
  3. had enhanced protection (see PTM092400), or
  4. had FP 2012 (where the certificate is for FP 2014).

The individual’s FP 2012 or FP 2014 certificate may also be revoked if they have failed to respond within the given deadline to a notice given by HMRC under paragraph 1 of Schedule 36 to Finance Act 2008 relating to the individual and FP 2012 or FP 2014.

If HMRC revokes an individual’s FP 2012 or FP 2014 certificate and does not explain why, the individual can ask HMRC to give their reasons. The individual may also appeal against HMRC’s decision to revoke the certificate.