Fixed and Individual Protection 2016

The transitional protections are similar to Fixed Protection 2014 and Individual Protection 2014. A new digital service is being provided for individuals to apply for the protectionsfrom July 2016.

There is no formal deadline for applying for protection, but if individuals intend to rely on a protected LTA they will need to have applied and obtained a reference number from HM Revenue and Customs (HMRC) before they start taking any benefits

Individuals who already have Primary Protection, Enhanced Protection or Fixed Protection 2012 or 2014 cannot apply for FP2016, but will continue to benefit from their existing protection from the LTA tax charge. They do not need to take any further action.

Continuing the provision of defined benefit death benefits will not be deemed to be a benefit accrual

FP2016 may be lost if a benefit accrual arises under a registered pension scheme. This can include making further contributions, or benefits increasing by more than the ‘relevant percentage’ defined by HMRC.

It may also be lost if the individual joins a new registered pension scheme, which can include being auto-enrolled by their employer.

Your employer does not have to automatically enroll you if you give them evidence of your LTA protection, such as a certificate from HMRC.

HMRC have previously confirmed that continuing the provision of defined benefit death benefits will not be deemed to be a benefit accrual.

IP2016 is only lost if a pension debit (as a result of a pension sharing order) reduces the amount of the individual’s protected LTA below the standard LTA.

As excepted group life schemes are not arrangements under a registered pension scheme it is still possible to participate in an excepted group life scheme without losing Fixed Protection.