Applications for pensions fixed protection submitted late due to an administrative error were rejected and HMRC were entitled to exercise their discretion not to accept the applications. 

The appellants engaged a firm (AFH) to provide advice on their pensions. In June 2006, AFH sent a letter to AXA (the main provider of the appellants’ pensions) stating that they wished to apply for enhanced protection.

Following correspondence between AFH and AXA, in April 2008 a consultant with AFH (M) reached the view that the appellants should not apply for enhanced protection, on the basis that this would create a tax charge and the lifetime allowance at the time was sufficient. However, this decision was never communicated to the appellants.  

Subsequently, the question of enhanced protection was revisited but M was wrongly of the view that enhanced protection had already been obtained. As such, he gave no advice to the appellants about