Applications for Lifetime Allowance protections

Sep 27, 2016, 13:00 by User Not Found

HM Revenue & Customs is offering two protections to pension scheme members who may be affected by recent changes to the Lifetime Allowance.

The Lifetime Allowance is the total amount of pension savings you can build up across all of your registered pension schemes during your lifetime. Any savings that exceed the Lifetime Allowance will be taxed at a higher rate.
The Lifetime Allowance reduced from £1.25 million to £1 million on 6 April 2016.
Two forms of protection are available to pension scheme members who may be affected by the new Lifetime Allowance. These are:

Fixed Protection 2016 – This allows the previous Lifetime Allowance of £1.25 million to be retained, but no further benefits can be built up after 5 April 2016; and
Individual Protection 2016 – This provides a bespoke level of Lifetime Allowance to those people who already had pension savings with a value of more than £1 million on 5 April 2016.