Individual Protection 2014 will protect the lifetime allowance equal to the value of the client’s pension savings on 5 April 2014, up to £1.5m.
In April 2016 two new forms of protection were introduced – Fixed Protection 2016 and Individual Protection 2016. Fixed Protection 2016 fixes the lifetime allowance at £1.25m, and Individual Protection 2016 fixes it at an amount equal to the value of the client’s pension savings on 5 April 2016, up to £1.25m.
The need for advice has never been clearer.
Phil Carroll, chartered financial planner and director, Intrinsic
Key points
As the end of the tax year approaches, advisers will need to make their clients conscious of the annual and the lifetime allowances as well as recent changes
It is likely there are a number of people who do not know whether the new rules will affect them
5 April 2017 marks an important cut-off date for people with large-value pension savings
