Individual Protection

On 6/4/2016, the Lifetime Allowance was reduced from £1.25m to £1m. A client with funds of at least £1m on 5/4/2016 can still apply for Individual Protection 2016 (IP2016).

IP2016 protects a Lifetime Allowance to the lower of;

– the value of your pension savings at 5/4/2016, and

– £1.25 million

The Individual Protection 2016 calculator will calculate the value of pension savings which includes any benefits that;

A. Came into payment before 6th April 2006 and therefore may not have already been tested against SLA.

B. Have already tested against the SLA (i.e. taken since A Day), and

C.  Have not yet come into payment

Clients who have IP2016 can continue to accrue/build up their pension fund on or after 6/4/2016.

Clients have to apply online and before they crystallise their benefits – if they want those benefits to be tested against their IP16 limit. The client cannot apply for IP2016 if they already have Primary Protection or Individual Protection 2014.

Fixed Protection 2016

Clients can also still apply for Fixed Protection 2016 (FP2016) which fixes their Lifetime Allowance at £1.25 million.

The client does not require to have a minimum fund on 5/4/2016 to apply for FP2016.

However, the client cannot accrue/build up their pension fund on or after 6/4/2016 (except in exceptional circumstances).

Clients cannot apply for FP2016 if they already have Enhanced Protection, Primary Protection, Fixed Protection, or Fixed Protection 2014.