From 6 April 2014 the standard lifetime allowance will be reduced from £1.5 million to £1.25 million.
Individual Protection 2014 will give individuals a protected lifetime allowance equal to the value of their pension savings on 5 April 2014, subject to an overall maximum of £1.5 million. You will not lose Individual Protection 2014 by making further savings in to your pension scheme, but any pension savings in excess of your protected lifetime allowance charge. You can’t apply for Individual Protection 2014 if you already hold primary protection.
Applications can be made online from 18 August 2014.
There is an online tool to help individuals decide whether to apply for IP2014 at www.hmrc.gov.uk/tools/lifetimeallowance/index.htm.
More information and guidance can be found at www.gov.uk/government/publications/pensions-individual-protection-2014
If you have any queries regarding pensions please do give us a call.