UK Pensions Alert : Brits in Crete Blog
The UK's #Pensions Advisory Service in its latest newsletter to British retirees and ex-pats says that HM Revenue & Customs' officials are surprised over the low number of people who have applied to protect their pension fund following the government's decision to cut the lifetime allowance.
The #lifetime allowance will be reduced from £1.8 million to £1.5m from April 6 2012 (it had been creeping up over recent years). Savers have until 5 April 2012 to apply for fixed protection to retain the £1.8m allowance for their fund.
Failure to apply for fixed protection will result in savings above £1.5m being taxed at 55 per cent, potentially costing British investors hundreds of thousands of pounds.
More details of the benefits and how the UK lifetime allowance is applied can be found at the UK website of the Pensions Advisory Service.