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As the deadline draws nearer we thought it worth reminding again that the final date for applying for Individual Protection 2014 is 5th April 2017.
Individual protection 2014 (IP14) can be applied for by those with total pension benefits above £1.25m at 5th April 2014 if they don’t already have primary protection. They are given a personal lifetime allowance equal to their total benefit value on 5th April 2014, but if total benefits exceed £1.5m their personal LTA will be restricted to £1.5m.
Pension funding is allowed to continue but any benefits in excess of their personal LTA will be subject to the LTA charge.
Anyone who wants to apply for IP14 protection must do this through the lifetime allowance online service, accessed through the guide Pension schemes: protect your lifetime allowance. To apply, members will need an HMRC online services account. To create an account, or to login to an existing one, they should go to HMRC services: sign in or register.
It is important to allow sufficient time to complete the registration and then apply for IP14 so do not leave it too late.
You should also be aware that although the deadline for IP14 applications closes at midnight on 5th April 2017, HMRC has said that individuals will still be able to log on after that date and amend an existing application (ie. if any of the figures require adjustment etc).
There are no specific deadlines for the newer Individual Protection 2016 and Fixed Protection 2016, but they should be applied for before a Benefit Crystallisation Event (BCE) takes place. If you are ensure what to do please contact your adviser.
The information supplied in this page is based upon our understanding of current UK law and HM Revenue and Customs (HMRC) practice
Please remember that tax law and HMRC practice may change from time to time.
Simmons Gainsford Financial Services Limited shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.
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