InvestAcc - The Retirement Planning Experts

Fixed Protection

Sun, 14 Aug 2011 11:27:58 GMT

Following confirmation in the Finance Act the Lifetime Allowance is due to reduce from £1.8m to £1.5m for any benefit crystallisations after 6th April 2012.

It is however possible to apply for protection to maintain the lifetime allowance at £1.8m and HMRC have now made the application forms available at http://www.hmrc.gov.uk/pensionschemes/apss227.pdf

In order to qualify for Fixed Protection, no further contributions may be paid into a money purchase arrangement and no further relevant benefit accrual must occur in a Defined Benefit arrangement.

• Fixed Protection can be applied for irrespective of the value of pension savings on 5 April 2012
• A valuation of current or expected benefits is not required
• Fixed Protection is not available where Enhanced or Primary Protection applies
• Fixed Protection will not increase
• If the standard Lifetime Allowance should ever increase above £1.8m, Fixed Protection will cease
• Application for Fixed Protection must be received by HMRC by 5 April 2012