7th March 2012

Scottish Life: £165,000 reasons clients need you

The deadline for fixed protection applications is 5 April 2012, with a big impact for those affected. We look at the rules and what you can do to help your clients.

HM Revenue & Customs (HMRC) have advised the Association of Member-Directed Pension Schemes (AMPS) that they have not received as many fixed protection applications as they anticipated.

They have also been very clear that late applications will not be accepted. How can you ensure that your clients are not faced with a potential £165,000 tax charge?

From 5 April 2012 the lifetime allowance is reducing from £1.8 million to £1.5 million. This is not going to impact every client, however, those who are impacted could be faced with a potential tax charge of £165,0001.

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