On October 25, 2022, the Court of Appeal (CA) handed down judgment in Bacci and others v Green [2022], upholding a High Court decision that a judgment debtor could be compelled to revoke the enhanced protection applying in respect of his occupational pension benefits and seek the maximum pension commencement lump sum and lifetime allowance excess lump sum to which he was entitled, in order to settle his debt of over £3 million to the successful claimants.

 

To give effect to the High Court judgment, the member debtor was required to delegate to the claimants' solicitor both his power to notify HMRC that he wished to revoke enhanced protection from the lifetime allowance charge, and his right to call for a pension commencement lump sum, a lifetime allowance excess lump sum and a pension from the remaining pension funds.

 

In dismissing the member’s appeal, the CA held that the right to revoke enhanced protection did not have to be either "property" or "tantamount to ownership" for the order to be made. There was no reason why a receiver could not be appointed over the same contingent right that a debtor held. The debtor could also be directed to revoke his enhanced protection, or to delegate his power to do so.

 

Read the judgment.