Primary and enhanced transitional protection at A-Day

Pensions that exceed the standard lifetime allowance post A-Day will be subject to tax of 25% or 50%, so investors whose pensions are likely to breach this should take primary or enhanced protection

The subject of transitional protection is probably the most complex of all the simplification provisions. This technical guide is intended to serve as a reminder of what is just around the corner, and to demonstrate how important it is to seek this protection if appropriate. As you know, the current formulae for calculating the Revenue & Customs (HMRC) maximum pensions and contributions will be discarded as at 6 April 2006. The existing regimes will be replaced by a new system, which will monitor the total value of accrued pension benefits. There will be no limit on the amount of benefi...