The government is forming a working group to consider the pensions tax issues arising from guaranteed minimum pensions (GMP) equalisation, almost five months after the High Court ruling.
In its March pensions scheme newsletter published today, is said that the group, chaired by HMRC, will work to address the “wider issues” arising from the equalisation of GMP.
In October 2018, the High Court ruled that Lloyds must start the process of equalising benefits in relation to GMP, a decision which had far reaching consequences across the industry.
Since then, many schemes have been waiting on the government to issue guidance on the bet method of equalising and a number of issues have arisen as a result.
Commenting on the update, Royal London director of policy, Steve Webb, said: “HMRC are proceeding at a snail’s pace when it comes to resolving the uncertainties created by the Lloyds Bank ruling on GMPs before Christmas.”
Last month, a freedom of information request by Royal London revealed that the equalisation process could leave over 100,000 workers who secured 'fixed protection' schemes with unexpected six-figure tax bills.
“There are savers at risk today of facing huge tax bills because a GMP adjustment invalidates their protection against lifetime allowance tax charges.
“Yet all we are promised is a new working group which has not yet started to meet. HMRC needs to appreciate that savers need to know where they stand and treat it with far greater urgency.”
The first meeting, which will include selected industry representatives and industry groups, is set to take place in April.
In light of the decision, some defined benefit pension schemes put a temporary block on transfers while they assessed the effects it would have, however some schemes are now able to include GMP in their transfer valuations.
In January, Pensions Administration Standards Association formed a new industry group to help schemes navigate the ruling.
The group will focus on promoting “best practice” on issues arising from the ruling on issues including missing data, transfer requests and rectifying underpayments.
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories