Individual protection 2014 – application deadline.
This news item is for financial advisers only. It mustn’t be distributed to, or relied on by, customers. It is based on our understanding of legislation at the date of publication.Mon Feb 20 10:10:00 GMT 2017 Back to results
When the standard lifetime allowance was reduced from £1.5 million to £1.25 million, from 6 April 2014, two new forms of protection were introduced – Fixed Protection 2014 (FP2014) and Individual Protection 2014 (IP2014).
Applications for FP2014 had to be submitted to HM Revenue & Customs before 6 April 2014, but IP2014 has had a three-year long application window, which will close at midnight on 5 April 2017.
So, if you have any clients who would benefit from IP2014, but who haven’t already applied for it, time is now running out.
IP2014 is only an option for individuals who –
- had total pension savings (including any pensions already in payment) under registered pension schemes valued at more than £1.25 million on 5 April 2014
- did not hold primary protection on 5 April 2014 (either on its own or lying dormant while holding enhanced protection)
IP2014 gives a protected lifetime allowance equal to the value of an individual’s pension savings on 5 April 2014 subject to an overall cap of £1.5 million.
Pensions Technical Services