WWW.DISSERTATION.XLIBX.INFO
FREE ELECTRONIC LIBRARY - Dissertations, online materials
 
<< HOME
CONTACTS



Pages:   || 2 | 3 | 4 | 5 |   ...   | 7 |

«Guidance Note 10 December 2013 Updated on 22 August 2014 1 Contents Page Introduction 3 Chapter 1 Overview 4 Chapter 2 Applying for IP 2014 7 Chapter ...»

-- [ Page 1 ] --

________________________________________________

Pensions: Individual Protection 2014

___________________________________________

Guidance Note

10 December 2013

Updated on 22 August 2014

1

Contents Page

Introduction 3

Chapter 1 Overview 4

Chapter 2 Applying for IP 2014 7

Chapter 3 Valuing savings 14

Chapter 4 Pension debits 32 Chapter 5 Taking benefits 36 Chapter 6 Additional information for scheme 41 administrators 2 Introduction As announced at Budget 2013, and following consultation, parliamentary scrutiny and Royal Assent, legislation was introduced in Finance Act 2014 to provide further transitional protection (‘individual protection 2014’) from the pensions lifetime allowance charge. This protection has been introduced because the standard lifetime allowance has reduced from £1.5 million to £1.25 million from 6 April 2014. Individuals who have pension savings of greater than £1.25 million on 5 April 2014 can apply for individual protection 2014, providing they don’t have existing primary protection. Individual protection 2014 will give individuals a protected lifetime allowance equal to the value of their pension savings on 5 April 2014, subject to an overall maximum of £1.5 million.

This document provides some questions and answers in connection with individual protection 2014 based on the legislation in Schedule 6 Finance Act 2014 and supporting regulations in Statutory Instruments 2014/18421 and 2014/18432.

If you have any further questions in connection with these changes please contact the HMRC Pension Schemes Services helpline on 0300 123 1079.

1 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection)(Individual Protection 2014) Regulations 2014 [SI 2014/1842].

2 The Registered Pension Schemes (Provision of Information)(Amendment) Regulations 2014 [SI 2014/1843].

3 Chapter 1 - Overview

1.1 Lifetime Allowance and Protection Overview What is the lifetime allowance?

The lifetime allowance is the maximum amount of pension savings that you can build up over your lifetime that benefit from UK tax relief.

If when you crystallise your pension savings these are worth more than the lifetime allowance you'll pay a tax charge (the lifetime allowance charge) on the excess. There are eleven events, called benefit crystallisation events (BCEs), when your pension savings may crystallise. Most of these events occur when you take benefits from your pension scheme.

For more information about the eleven BCEs see RPSM11102020.

The level of the standard lifetime allowance has been reduced from £1.5 million to £1.25 million with effect from 6 April 2014 onwards.

For further information on the lifetime allowance rules see Understanding the lifetime allowance for pension schemes.

As a consequence of the reduction in the lifetime allowance from April 2014, there are two new forms of transitional protection available, fixed protection 2014 (‘FP 2014’) and individual protection 2014 (‘IP 2014’).

Fixed protection 2014 (FP 2014) FP 2014 is aimed at individuals who  at 5 April 2014 had already built up savings of more than £1.25 million, or  had planned to do so after that date in the expectation that the lifetime allowance would not reduce from the 2013-14 level.

FP 2014 will give you a protected lifetime allowance of £1.5 million. This means you can crystallise benefits worth up to £1.5 million without paying the lifetime allowance charge.

If you expect your pension savings to be more than £1.25 million (including taking into account past benefit crystallisation events) when you come to take your benefits on or after 6 April 2014, you can use FP 2014 to help reduce or eliminate the lifetime allowance charge. FP 2014 had to be applied for on or before 5 April 2014 - if you make an application after that date HMRC cannot accept it.

In return for this protection, the tax rules limit your ability to accrue future benefits. If you exceed these limits then you will lose your FP 2014. You can also lose FP 2014 in other circumstances. For further information on FP 2014 and how to apply see RPSM11106200.

–  –  –

The government has also introduced in Finance Act 2014 an additional form of protection IP 2014 - which offers individuals more flexibility than FP 2014 in how they protect their pension savings.

If you have pension savings on 5 April 2014 which have a value of more than £1.25 million, IP 2014 allows you to protect those savings (up to a value of £1.5 million), as long as you don’t have primary protection, see RPSM03100000.

IP 2014 will give you a protected lifetime allowance equal to the value of your pension savings on 5 April 2014 subject to an overall maximum of £1.5 million. Unlike FP 2014 there are no restrictions on future pension savings, although if they exceed your protected lifetime allowance the excess will be subject to the lifetime allowance charge.

IP 2014 is available even if your pension savings on 5 April 2014 have a value of more than £1.5 million. As the maximum protected lifetime allowance you can have with IP 2014 is £1.5 million, any savings in excess of this will not be protected and will be subject to the lifetime allowance charge when you crystallise your benefits. See RPSM11105000 for more guidance on the lifetime allowance charge.





The online application is available on the HMRC website. You have up to 5 April 2017 to submit your IP 2014 online application to HMRC.

1.2 IP 2014 basic overview Who can have IP 2014?

If you are a member of a registered pension scheme and/or a relieved member of a relieved

non-UK pension scheme you can have IP 2014 provided that:

 on 5 April 2014, your pension rights in such schemes are valued at more than £1.25 million, and  you do not have valid primary protection on 5 April 2014, and  your application for IP 2014 is received by HMRC by 5 April 2017 at the latest.

What will be my protected lifetime allowance under IP 2014?

If you successfully apply for IP 2014, you will be given a protected lifetime allowance equal to the value of your pension savings on 5 April 2014 subject to a maximum of £1.5 million.

What is the maximum tax free lump sum I can have?

Normally, the maximum tax-free lump sum you can take from 6 April 2014 will be 25% of the uncrystallised value of your protected lifetime allowance, subject to what the rules of your pension scheme(s) allow. However, some individuals are entitled to tax-free lump sums greater than 25% of their savings where they had a right to the higher amount of lump sum on 5 April 2006 and this is protected under the transitional rules in Schedule 36

–  –  –

What are the restrictions on future savings?

There are no restrictions. But any pension savings above your protected lifetime allowance will be liable to the lifetime allowance charge.

What happens if my pension savings exceed my personalised lifetime allowance?

You will be subject to the lifetime allowance charge on the excess when you take your benefits.

What happens if the standard lifetime allowance goes above my personalised lifetime allowance?

If at some time in the future the level of the standard lifetime allowance is higher than the level of your personalised lifetime allowance, your IP 2014 protection will cease to apply and you will revert to the higher standard lifetime allowance.

How do I apply for IP 2014?

See Chapter 2 of this guidance.

Can I have both FP 2014 and IP 2014?

Yes – see Chapter 2 of this guidance.

–  –  –

Note – the legislation talks about “giving notice of an intention to rely on IP 2014” but for ease of understanding in this guidance the process for giving notice is referred to as making an application for IP 2014.

References to regulations in this Chapter are to the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014 [SI 2014/1842].

Who can apply for IP 2014?

[Paragraph 1(1) Schedule 6 Finance Act 2014] You can apply for IP 2014 even if you already have  enhanced protection,  fixed protection, or  fixed protection 2014.

But you cannot apply if you have  primary protection, or  both enhanced protection and (dormant) primary protection.

If you want to apply for IP 2014 you will need to meet certain conditions. The conditions

are that:

 you have one or more “relevant arrangements” (see following question) on 5 April 2014, and  your relevant amount on 5 April 2014 is more than £1.25 million, and  you do not have primary protection (see RPSM03100050 and RPSM03102000).

If you are satisfied you meet these conditions you can apply to HMRC for IP 2014.

What is a relevant arrangement?

[Paragraph 1(4) Schedule 6 Finance Act 2014]

You have one or more relevant arrangements if on 5 April 2014:

 you are a member of one or more registered pension schemes, and/or  you are a “relieved member” (see RPSM13102530 for more detail) of a “relieved non-UK pension scheme” (see RPSM13102520 for more detail). Very broadly this means you have funds in an overseas pension scheme which have benefitted from UK tax relief in some way, but not including savings that were in a registered pension scheme that have been transferred to the non-UK scheme.

What is my relevant amount?

[Paragraph 1(5) of Schedule 6 to Finance Act 2014] Your relevant amount is the total value on 5 April 2014 of your pension rights in all your relevant arrangements (see previous question). An individual can have different types of

–  –  –

How do I apply for IP 2014?

[Regulation 4(2)(a)] To apply for IP 2014 you will need to complete the online application which is available on the HMRC website. The online application must be received by HMRC by 5 April 2017.

Anyone can complete the online application and submit it on your behalf.

I intend to apply for IP 2014. What would happen if I died before 6 April 2017 and before applying for IP 2014?

[Regulation 14] Your personal representatives will have the right to apply in your place.

What is the final deadline for applying for IP 2014?

[Paragraph 1 Schedule 6 Finance Act 2014] Your online application must be received by HMRC by 5 April 2017 at the latest.

Applications received after that date will not be accepted.

Can I make a late application after 5 April 2017?

[Paragraph 1 Schedule 6 Finance Act 2014] No. Your online application must be received by HMRC by 5 April 2017 at the latest.

There is no provision in the legislation allowing HMRC to accept late applications. You must therefore ensure that your application is made on time.

What if I make an application on time but I have missed something out?

Applications must be received by HMRC by 5 April 2017 at the latest.

If, when we receive it, the application contains any obvious mistakes or is incomplete we will send you a letter asking for confirmation of the correct or missing information.

What information do I need to give on the online application?

[Regulation 4(1)] Your application for IP 2014 must be made using the online application which is on the

HMRC website. To complete the application correctly you must give the following details:

 confirmation that you don’t have primary protection (see RPSM03100050 and RPSM03102000),  the value of your pension savings, broken down into Amounts A, B, C and D as appropriate, see Chapter 3 of this guidance,

–  –  –

Whoever completes the form must also complete the declaration on the form declaring that the information they have given is true and complete to the best of their knowledge and belief.

Will HMRC confirm receipt of my IP 2014 application?

You will receive an email confirmation of receipt of your application following your online submission.

Once we have accepted and processed your online application we will send you a certificate to state that you have IP 2014. HMRC is likely to start issuing certificates from October 2014.

If IP 2014 is dormant because you have one of enhanced protection, fixed protection or fixed protection 2014 we will write to you confirming that your IP 2014 application has been accepted. But as these protections are more favourable than IP 2014, your IP 2014 certificate won’t be issued unless and until your IP 2014 becomes active because you have lost the other form of protection and notified us of this, as you are required to do.

How will I know if my application for IP 2014 has been accepted?[Regulation 5]

If you do not have any existing protection, when we have received and processed your online application, if you are entitled to IP 2014, we will send you a certificate (with a unique reference number) stating that you have IP 2014 and the amount protected. You must keep this certificate safe as you will need to show it to your pension scheme(s) if you want to rely on IP 2014 when you come to take your benefits.

Where you have existing enhanced protection, fixed protection or fixed protection 2014, we will write and tell you that your IP 2014 application has been accepted. But your IP 2014 certificate won’t be issued unless and until your IP 2014 becomes active.

Why would HMRC reject my application?

[Regulation 6]

HMRC may refuse to accept your application if:

 it is not made on the online application,  all the information required has not been provided,  we receive your application after 5 April 2017.

–  –  –

If we refuse to accept your application and if we have not already explained why, you can require us to give you the reasons for our refusal. You may also appeal against the decision not to accept your application. You must tell HMRC that you want to appeal against that decision within 30 days of the day when we gave our decision to refuse to accept your application.

Where the appeal is considered by the tribunal, the tribunal will decide whether HMRC

was entitled to take the view that:



Pages:   || 2 | 3 | 4 | 5 |   ...   | 7 |


Similar works:

«Malmö högskola Lärarutbildningen Lärarkunskap Examensarbete 10 poäng Hårklyverier om betygsättning En studie om betygsättning av praktiska moment inom den gymnasiala frisörutbildningen Hair splitting while marking A study concerning marking of practical issues within the hairdresser education at upper secondary level. Författare Barbro Dahlin-Volsing Tina Rydén Kurs 6 Examensarbete 51-60 poäng Handledare: Björn Lundgren Lärarutbildning 60p Slutseminariet 2007-10-15 Examinator:...»

«The Semantic Content of the General Classifier in Mandarin James Myers Shu-Ping Gong Zhong-Gang Shen National Chung Cheng University Address of first author: James Myers Graduate Institute of Linguistics National Chung Cheng University Min-Hsiung, Chia-Yi 621 Taiwan, ROC Tel: 886-5-242-8251 Email address of first author: Lngmyers@ccu.edu.tw Presented at the International Association of Chinese Linguistics Eighth Annual Conference Melbourne, Australia July 5-7, 1999 Abstract A basic question in...»

«Paper tiger, hidden dragons 2: APRIL fools The forest destruction, social conflict and financial crisis of Asia Pacific Resources International Holdings Ltd (APRIL), and the role of financial institutions and paper merchants Paper tiger, hidden dragons 2: APRIL fools The forest destruction, social conflict and financial crisis of Asia Pacific Resources International Holdings Ltd (APRIL), and the role of financial institutions and paper merchants February 2002 Written and researched by: Ed...»

«TOP TIPS T O H E L P YO U RIASE MORE VISIT EVERYDAYHEROCOMMUNITY.COM/ OR CALL 1300 798 768 TO LEARN MORE. EVERYDAY HERO 1300 798 768 EVERYDAYHERO.COM.AU PROPELLING PASSION FOR CHANGE CONTENTS T IPS F O R RA I S I N G M ON EY FO R THE CAUSE YO U CA RE A B O UT 3 RAIS ING M ON EY AS A T E A M 4 G IVING TH I N G S U P TO RA I SE MO N EY FO R YO UR CAUSE 5 RAIS ING M ON EY U SI N G FACEB O O K 6 RAIS ING M ON EY U SI N G T W ITTER 7 RAIS ING M ON EY U SI N G I N STAGRA M 8 TOP WAYS TO RA ISE M ONEY...»

«Universiti Tunku Abdul Rahman MORAL PANICS AND MIGRANT DEVIANCE: PERCEIVED ATTITUDE AND INTENTIONS The Sept. 28, 2007 news report of the murder of two local women by African students in Kuala Lumpur resulted in a spate of crime stories amplifying and vilifying African Nationals and students. The media constructed a newly stylized word Awang Hitam to describe this deviant group. Relying on Ben Yehuda’s (1994) five criterion model and findings from a content analysis of news articles in the...»

«BOOK REVIEW by Fred Jennings Kenneth E. Boulding, The Image: Knowledge in Life and Society; Herbert A. Simon, The Sciences of the Artificial, 2nd ed.; and Kenneth J. Arrow, The Limits of Organization.1. Introduction About 25 years ago, during the research stages of my Ph.D. dissertation (Jennings 1985), I read three influential books in sequence: Boulding’s The Image (1956); Simon’s The Sciences of the Artificial (1981); and Arrow’s The Limits of Organization (1974). It was as much the...»

«Heywood, Middleton & Rochdale Glaucoma Repeat Readings Service Heywood, Middleton & Rochdale Glaucoma Repeat Readings Policies and Protocols GM Primary Eyecare Ltd Heywood, Middleton & Rochdale Glaucoma Repeat Readings Service GRRS Contract and Protocol Key Points Each practice has a contract with GM Primary Eyecare Ltd (GMPEC Ltd) to supply services under the Glaucoma Repeat Readings Service (GRR). This contract mirrors the contract between GMPEC LTD and the Clinical Commissioning Group (CCG)....»

«LAMENTATIONS Issue 101 May, 2006 middle The month of May. May 20th, Young Jim’s angel date. his 15th. I miss him terribly, but I feel he has become part of me and is with me constantly as well as with our children. I feel certain that Jim and our children know each other, because we are put together by someone, so it must be them. May you feel your child near you today. This poem is to you for Mother’s Day: Heaven lit up with His mighty presence, As all the Angels looked down, Today the...»

«CELESTINA SALE A LAS TABLAS EN MÉXICO En el año 1995 ocurrió algo aquí en Monterrey que escandalizó a la mayor parte de la comunidad teatral del Municipio. El Ayuntamiento anunció que iba a analizar las obras que estaban programadas para presentarse durante la XVI Muestra Nacional de Teatro para evitar que ofendieran la moral y las buenas costumbres. Esto coincidió con la campaña del Ayuntamiento contra los clubes nocturnos que incluían desnudos en sus espectáculos. No es sorprendente...»

«Many of the following comments are taken from a sermon given by Dr. Ed DeVires on August 10, 1998 at King James Baptist Church in Arlington, Texas. Some editing has been done for clarity purposes. We have endeavored to insure that the original meaning of the sermon remains intact. All scriptural references’ are from the King James version of the Bible. Let us begin with a basic scripture which teaches us to glorify God in our bodies, as well as our spirits. I COR 6:19-20 What? know ye not...»

«Comune di Bologna Centro per l’Adattamento dell’Ambiente Domestico e-mail: caad@comune.bologna.it CAAD Bologna, un caso concreto: la signora T. Oggetto: Sintesi della consulenza effettuata in favore della sig.ra T. Il giorno., si è tenuta una consulenza in favore del sig.ra T. con l’obiettivo d’individuare soluzioni per l’accessibilità dell’appartamento situato in via. a.Sono presenti all’ incontro la stessa Sig.ra T. e il figlio sig. P. Per conto del Centro per l’Adatta...»

«Religious Freedom and Minority Rights in Greece: the case of the Muslim minority in western Thrace Iris Boussiakou GreeSE Paper No 21 Hellenic Observatory Papers on Greece and Southeast Europe December 2008 All views expressed in this paper are those of the authors and do not necessarily represent the views of the Hellenic Observatory or the LSE © Iris Boussiakou _ Table of Contents Abstract _ iii 1. Introduction _1 2. The Appointment of the Mufti _5 2.1. Procedure and Process of the...»





 
<<  HOME   |    CONTACTS
2016 www.dissertation.xlibx.info - Dissertations, online materials

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.