Commenting on HMRC’s April 2022 GMP Equalisation Newsletter, Matt Davis, Head of GMP Equalisation at Hymans Robertson said:

“The industry will welcome the guidance from HMRC in today’s GMP equalisation newsletter for April 2022. This provides tax guidance for schemes looking at making transfer top-up payments and those investigating GMP conversion. The guidance gives more clarity to many pension schemes as they work through GMP equalisation projects.

“Within the guidance, HMRC highlighted the risk to deferred members of GMP conversion causing the loss of fixed protection. In our experience routes to try to manage this risk can involve quite a bit of extra work for schemes. HMRC indicated that they need to undertake further work in this area, and it may require legislative change to resolve this. It would be very helpful to the industry if this can be done promptly.”