Legislative changes on 6th April 2006 introduced a single so-called 'simplified' set of tax rules to apply to all pensions. Many argue that these changes have in fact caused further confusion and uncertainty, but what is clear is that both opportunities and threats have been created.

For example, for those with pension funds exceeding the lifetime allowance on pension savings there is potentially tax payable at up to 55% on any excess amount.

It is possible, however, to apply to protect your pension funds from this Lifetime Allowance tax charge, as long as you register in time to have your application approved by the 5 April 2009 deadline.

While Baker Tilly is unable to provide specific advice on this, we work closely with a firm of wealth advisers, Towry Law, who have considerable experience in advising clients on their pension arrangements, and specifically advising on (Primary and Enhanced) protection.