View more on these topics

Bell urges HMRC to relax fixed protection rules

AJ Bell is calling on HM Revenue and Customs to relax rules preventing savers who failed to claim primary protection on their tax-free pension cash on A-Day from taking fixed protection before April 2012.

Earlier this month, Money Marketing reported that investors who failed to claim primary protection on their 25 per cent tax-free cash on April 6, 2006 could see their maximum available tax-free pension cash plummet from £450,000 to £375,000. The drop comes as a result of the Treasury’s decision to cut the lifetime allowance for tax-privileged pension saving from £1.8m to £1.5m from April 6, 2012.

Fixed protection protects people from this drop but HMRC rules prevent people who have already claimed primary protection from switching to fixed protection.

A freedom of information request from AJ Bell reveals that 3,913 people took out primary protection without lump-sum protection on A-Day.

AJ Bell technical marketing manager Gareth James says: “HMRC could easily solve this problem by allowing individ-uals the option to switch from primary to fixed protection.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “It would be fairly straightforward and entirely reasonable to tweak the rules so people with primary protection can roll over into fixed protection.”



Lesley collins

The chief executive of Independent Women and Edinburgh Investment Consultants has made advising women about financial matters her unique selling point and the patronising comments only make her more determined. Interview by Rachael Adams


MPs slam “disturbing” fall in HMRC service levels

Budget cuts and inflated expectations of IT projects have lowered the quality of HMRC’s interaction with the public to unacceptable levels, according to the Treasury select committee. In a report published today, Administration and effectiveness of HM Revenue and Customs, the committee says the evidence it has received in its inquiry had been “disturbing”. It […]

Snowden cautious on eurozone periphery

Aegon Asset Management bond fund manager Stephen Snowden says investors must remain cautious on peripheral Europe despite credit spreads being the widest they have been in the UK corporate bond market since 2009. Snowden returned to Aegon this month, seven years after he left to join Old Mutual Asset Managers. He says that problems in […]

House prices up 0.2% in July

House prices increased by 0.2 per cent in July, according to the latest house price index from Nationwide. The average house price is now £168,731, 0.4 per cent down on a year ago. Nationwide chief economist Robert Gardner says: “Stability has been the watchword for the UK housing market over the past 12 months. Sluggish […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm