Ignorance is not bliss

The taxpayer was chairman of Sedgwick Marine and Advisory Group. He retired from the board in 1993 but continued to work as a consultant for the company until the end of 1999. He received two pensions: one from his employer and the other was a personal plan.

The taxpayer received information from his personal pension provider on four occasions but paid little attention to them. As a result he failed to apply for enhanced protection of his lifetime allowance under FA 2004 Sch 36 para 12 until the deadline had passed.

HMRC refused his application so the taxpayer appealed.

The First-tier Tribunal said ignorance of the need to do something by a certain date could in certain circumstances be a reasonable excuse for a late claim.

However ...