short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.
HMRC can’t guarantee these are Recognised Overseas Pension Schemes (ROPS) or that any transfers to them will be free of UK tax. It is your responsibility to find out if you have to pay tax on any transfer of pension savings.
Lifetime allowance reduction 6 April 2016
The Lifetime Allowance is being reduced to £1 million from 6 April 2016 and legislation provides two new transitional protections. A new digital service is being provided for individuals to apply for the protections from July 2016. Legislation will be introduced to reduce the Lifetime allowance (LTA) to £1 million from 6 April 2016 and provide 2 new transitional protections, fixed protection 2016 and individual protection 2016. The transitional protections are similar to fixed protection 2014 and individual protection 2014. A new digital service is being provided for individuals to apply for the protections from July 2016. There is no formal deadline for applying for protection, but if individuals intend to rely on a protected LTA they will need to have applied and obtained a reference number from HMRC before they start taking any benefits.
HMRC’s Pension Schemes Newsletter 76 sets out the processes for individuals who want to take their benefits before the digital service is available in July 2016.
Further information about the Lifetime allowance reduction can be found in HMRC’s latest Pension schemes newsletter 77 .
Guaranteed Minimum Pension (GMP) Checker 6 April 2016
From 6 April 2016 the Guaranteed Minimum Pension (GMP) Checker will be available to all Pension Scheme administrators via GOV.UK to obtain GMP calculations, contributions and earnings information in respect of individual members of their Pension Scheme.
The GMP Checker (formerly the GMP Micro-Service) has been developed to replace the CA1629 - statements for individuals who reach State Pension age on or after 6 April 2016. These statements are no longer being issued.
The latest Countdown bulletin from The National Insurance Services to Pensions Industry (NISPI) provides information about the new Guaranteed Minimum Pension (GMP) Checker.
CIPP Policy News Journal
25/04/2016, Page 389 of 453
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