Fixed Protection 2014 Print
Fixed protection 2014 works in a similar way to the fixed protection regime introduced in April 2012. From 6 April 2014 the standard lifetime allowance was reduced from £1.5 million to £1.25 million but with fixed protection 2014 the lifetime allowance may be fixed at £1.5 million. This means individuals can take pension savings worth up to £1.5 million without paying the lifetime allowance charge. The individual had to apply before 6 April 2014 to obtain fixed protection 2014.
An individual cannot have fixed protection 2014 if he already has primary, enhanced or fixed protection. Fixed protection 2014 will be lost if the individual:
- has a contribution paid to any money purchase pension pots;
- builds up new benefits in a defined benefits or cash balance pension pot above a set amount;
- joins a new pension scheme – unless this is only transferring pension savings from one existing scheme into a new scheme;
- starts saving in a new pension pot either under an existing pension scheme or a new pension scheme.