Deadline for applying for individual protection 2014 is 5 April 2017.
The standard pension lifetime allowance was £1.5m until it was reduced to:
- £1.25m on 6 April 2014
- £1m on 6 April 2016.
Individuals may be able to protect their pensions from these reductions. There are three protections available, although the individual protection 2014 is only available to claim until 5 April 2017.
Individual protection 2014 achieves the following:
- Protects your lifetime allowance to the lower of:
(a) The value of your pension(s) at 5 April 2014
(b) £1.5m
- After claiming individual protection 2014, contributions can still be made into the individual’s pension(s). However, tax will be due on money taken from the pension(s) that exceed the individual’s protected lifetime allowance.
Individual protection 2014 can be applied for if the person’s pension(s) was worth more than £1.25m at 5 April 2014.
This guidance from HMRC provides further information on this together with instructions about how to apply.
Article from ACCA In Practice