Apply for Pension Protection
The application process for protecting your pension against the reductions in the lifetime allowance is finally available online. If you are an existing client of Lyndhurst you will be well aware that we have been monitoring this very closely so we can help you and all those clients affected apply for the correct level of protection.
This application process will allow you to apply for Fixed Protection 2016, Individual Protection 2016 and Individual Protection 2014. Of course this is subject to meeting the correct requirements.
The Standard Lifetime allowance has reduced to £1.25m on 6th April 2014 and £1m on 6th April 2016. Depending on your circumstances and the value of your pension at the time you may be able to protect your pension from these reductions thus saving a significant level of tax.
There are 3 protections you can apply for and further details can be found on the government website.
| Protection | What it does | Can I keep building up my pension(s)? |
|---|---|---|
| Individual protection 2016 | Protects your lifetime allowance to the lower of: – the value of your pension(s) at 5 April 2016 | Yes. But you must pay tax on money taken from your pension(s) that exceed your protected lifetime allowance. |
| Fixed protection 2016 | Fixes your lifetime allowance at £1.25 million. | No, except in limited circumstances. If you do, you’ll: – lose your fixed protection 2016 |
| Individual protection 2014 | Protects your lifetime allowance to the lower of: – the value of your pension(s) at 5 April 2014 | Yes. But you must pay tax on money taken from your pension(s) that exceed your protected lifetime allowance. |
If you need help in choosing the right protection for your circumstances then contact one of our pension specialists on 01582 715777 or admin@lyndhurstfm.co.uk.
