HMRC has revealed it is still unsure exactly how transitional protection will be on offer for those hit by the reduction in the lifetime allowance wrt pensions.
In March George Osborne announced that the maximum amount savers can put into their pension pots over their lifetime (the lifetime allowance) will be cut from £1.25m to £1m next April.
Any savings above the limit will lose tax relief, and suffer a 55% tax rate when it is eventually withdrawn.
In various pension schemes newsletters issued by HMRC it stated that it “would aim to provide further information about the transitional protection on offer”.
This is not specifically HMRC's fault, but down to the fact that legislation for both the reduction in the lifetime allowance and the protection regimes 2016 will not be delivered until the Finance Bill 2016.“Unfortunately we are not able to provide as much detail as we would have liked.”
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"