Individual protection 2014

What is individual protection 2014?

Individual protection was introduced to give individuals a personal lifetime allowance equal to the value of their pension funds on 5 April 2014 and £1.5 million.

When could you apply for individual protection 2014?

Up to 5 April 2017, an individual who, on 5 April 2014, did not have primary protection and whose benefits in registered pension schemes had a total value of more than £1.25 million, could register for individual protection 2014 (IP2014). This enables them to have a personal lifetime allowance of the lower of that value and £1.5 million rather than accept the reduction of the standard lifetime allowance to £1.25 million from £1.5 million with effect from 6 April 2014 and continue to have benefit accrual in their schemes.

Benefit accrual includes personal and employer contributions to money purchase schemes such as SIPPs and SSASs and benefit accrual in defined benefit or cash balance schemes.

The deadline for applying for individual protection 2014 closed on 5 April 2017.

Can individual protection be lost?

Individual protection 2014 cannot normally be given up or lost. However, if, at any time after HMRC have issued an individual with an Individual protection 2014 certificate, their pension rights are subject to a pension debit as a result of a pension sharing order on divorce, they must inform HMRC about this within 60 days of the pension debit as this will reduce or revoke their individual protection 2014.

If, in future, the standard lifetime allowance increases to more than an individual’s individual protection 2014, it will cease and be replaced with the higher standard lifetime allowance.

Can you hold other protections with individual protection 2014?

Individuals will be able to hold individual protection 2014 along with:

• Enhanced protection
• Fixed protection 2012
• Fixed protection 2014
• Fixed protection 2016

Individuals will not be able to hold individual protection 2014 along with:

• Primary protection