What’s individual protection 2016?


Individual protection 2016 is a fund protection option introduced to coincide with the reduction in the lifetime allowance from £1.25m to £1m from 6 April 2016. It’s only an option for those with pension savings (including any pensions already in payment) of more than £1m on 5 April 2016, provided they don’t already have primary protection, enhanced protection with dormant primary protection or individual protection 2014.

Individual protection 2016 will protect the value of an individual’s pension savings on 5 April 2016 but the protection will be capped at the level of the lifetime allowance for 2015/2016 of £1.25m. Any pension savings in excess of £1.25m can’t be protected, and they would be subject to a lifetime allowance charge when pension benefits are subsequently taken.

It’s also possible for those with individual protection 2016 to make further pension contributions or accrue additional defined benefits rights after 5 April 2016.

Individuals must register with HM Revenue & Customs before 5 April 2019.



The following HM Revenue & Customs link gives more information: www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance

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