Individual Protection

The Lifetime Allowance reduced from £1.5m to £1.25m on 6/4/2014. A client with funds of at least £1.25m at 5/4/2014 could have applied before 5/4/2017 for Individual Protection 2014 to protect a fund of up to £1.5m.

As from 6/4/2016, the Lifetime Allowance reduced further to £1m. Similar to the above, a client with funds of at least £1m at 5/4/2016 can apply for Individual Protection 2016 to protect a fund of up to £1.25m. Clients have to apply on-line and before they crystallise their benefits – if they want those benefits to be tested against their IP16 limit.

The Individual Protection 2016 calculator will calculate value of pension savings which includes any benefits that have not yet come into payment, benefits already tested against the SLA (i.e. taken since A Day), those that came into payment before 6th April 2006 and therefore may not have already been tested against SLA.