Fixed protection sets the lifetime allowance at a specific level to provide protection against the lifetime allowance charge for benefits up to that amount.
These levels are:
- £1.8 million for fixed protection 2012.
- £1.5 million for fixed protection 2014.
- £1.25 million for fixed protection 2016.
If the standard lifetime allowance rises above the protected amount in the future, then that higher amount will apply.
If you have fixed protection, you’re not able to make further contributions to a money purchase plan from 6 April in the tax year that your protection applies to, without losing the protection. You can also lose fixed protection in other ways – more detail can be found on the HMRC website.
Applications for fixed protection 2012 and 2014 closed on 5 April 2012 and 2014 respectively.
You can make applications for fixed protection 2016 online. Anyone who wants to use the online service needs to have an HMRC Online Services Account.
HMRC will give you a protection reference number which you'll need to provide to your pension scheme each time you take your benefits if you have fixed protection 2016.