Seize the opportunity before A-day arrives

The £1.4m lifetime limit proposed in December 2002 by the Treasury means any individual with a pensi...

The £1.4m lifetime limit proposed in December 2002 by the Treasury means any individual with a pension fund in excess of this amount would suffer a recovery tax of 25% on the excess when the benefits are taken. However, anyone with a pension fund in excess of £1.4m already can apply for either primary or enhanced protection. One way of dealing with both forms of protection is to contribute as much as possible to the pension before A-day, 6 April, 2005, to register the highest possible personal lifetime limit. Following this, there appears little incentive to pay any further contributions...