Focus 102 – Fixed and Individual protection 2016

Fixed and Individual protection 2016

From 28th July it has been possible to apply for FP16 and IP16 using the Government Gateway, which requires the member to have a personal log on. 

This will provide an immediate reference number for use by the Scheme Administrator should the client want to take benefits. Those that applied using the paper method earlier in the year will still need to complete the online application process for their chosen type(s) of protection. 

Full details of the application process can be found on the Gov.uk website here.

Family SIPP 

You may have read the press reports regarding concerns raised over family SIPPs which may have allowed members to reallocate growth to other members of the same scheme, but are now under review by HMRC. 

We understand that reallocation of growth had been promoted as a benefit to help the members who were at or near the Lifetime Allowance.  Talbot and Muir have always believed that this flies in the face of the intention of pensions legislation and was always at risk of a challenge from HMRC.  It would appear our concerns were well founded. 

This uncertainty could be a real cause for concern to your clients for whom this was a major benefit and could turn out to be a costly alternative to a conventional SIPP, if it no longer meets their primary objectives.

Should you have any clients that may be affected by the withdrawal of this product, we are happy to consider transfers into the Talbot and Muir SIPP. 

Please contact our Adviser Support Team to discuss any specific cases.