HM Revenue and Customs has now opened applications for individual protection 2014 from the lifetime allowance, up to an overall maximum of £1.5m.
Applications for individual protection 2014 opened yesterday (18 August) and are online only. Advisers can apply for individual protection for clients from 18 August 2014 until 5 April 2017.
From 6 April the standard lifetime allowance was reduced from £1.5m to £1.25m.
Individual protection 2014 gives individuals a protected lifetime allowance equal to the value of their pension savings on 5 April 2014, subject to an overall maximum of £1.5m.
Those who are awarded this protection will not lose individual protection 2014 by making further savings into their pension scheme, but any pension savings in excess of the protected lifetime allowance will be subject to a lifetime allowance charge.
Savers cannot apply for individual protection 2014 if they already hold primary protection.
To learn more about changes to the pensions lifetime allowance, and earn CPD, click here to read FTAdviser’s guide to the subject.
