The Upper Tribunal dismissed the appeal from Donald Ketley against HMRC’s decision to refuse to consider Ketley’s late notification for enhanced protection for his pension fund under schedule 36 Finance Act 2004.

The First Tier Tribunal (FTT) dismissed Ketley’s appeal against that decision and would not allow an appeal but after an oral hearing with the Upper Tribunal the appeal against the decision on the grounds that the First Tier Tribunal had ‘erred in law’ was granted.

The case centred on whether Ketley had a reasonable excuse for filing for enhanced protection late, as well as whether he took ‘unreasonable delay’ in making his application.

Enhanced protection allows the pension fund to grow to any amount without it being subject to the lifetime allowance. It was available to taxpayers who submitted a form to HMRC before 5 April 2009, but HMRC can accept late applications where the taxpayer has a reasonable excuse.