Protection from the Lifetime Allowance Charge
The Government announced on 14 October 2010 that the Lifetime Allowance from 6 April 2012 would reduce from £1.8 million to £1.5 million.
Individuals who registered at A-Day for Primary and /or Enhanced Protection are not affected by the change. For Primary Protection a Lifetime Allowance of £1.8 million will still be applied to their personal Lifetime Allowance factor.
However the Government recognised that there would be individuals who had continued to build pension rights in the expectation of a Lifetime Allowance of at least £1.8 million who could be significantly affected by the reduction in the Lifetime Allowance.
They have now announced that individuals who are not registered for Primary or Enhanced Protection will be able to apply for what is known as fixed protection. Although the relevant form is not yet available from HM Revenue & Customs they have confirmed that application for this protection must be received by them no later than 5 April 2012.
