The new pension funding rules introduced on 5 April 2011 brought in fixed protection for individuals saving towards the old lifetime allowance limit of £1.8 million. The form to apply for fixed protection is now available from HMRC.
If individuals expect their pension savings to be more than £1.5 million when they come to take benefits on or after 6 April 2012 they can use fixed protection to help protect them from the lifetime allowance charge of 55% on any excess value up to £1.8 million. A form to apply for fixed protection is now available at www.hmrc.gov.uk/pensionschemes/apss227.pdf
Associated Notes
www.hmrc.gov.uk/pensionschemes/apss227-notes.pdf
HM Revenue & Customs have published a Fixed Protection Newsletter that describes the application process in detail and explains the Fixed Protection Rules.
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