Pensions – How to apply to protect your pension tax allowances

Lifetime Allowance reduced to £1.25 million for pension funds

From 6 April 2014, the standard Lifetime Allowance (LTA) that marks the ceiling for tax breaks available on pension funds was reduced to £1.25 million, from £1.5 million. However, Individual Protection (IP) has been made available to protect the value of your pension fund as at 5 April 2014. Conditions apply. Read our related article detailing the Tips and Traps around the changing rules relating to pension savings.

How to check your LTA and apply online for IP

You can now apply online using the HMRC online form to protect your pension position as an individual.

Step 1

Applications are valid for those with pension funds over £1.25 million at 5 April 2014. Check the Lifetime Allowance checking tool to see if you need to apply for IP.

Step 2

Apply for IP online using the HMRC online form to protect your pension fund. The form is secure, simple to complete and you will get an immediate notification for your application. You can apply from 18 August 2014 until 5 April 2017. Applications are only valid if you do not have Primary Protection in place already. Figurit give tax advice around pensions as an effective retirement planning option for doctors and dentists. Call to discuss your pension situation or be connected to a specialist financial advisor to get you started on planning for your future: 020 7376 9333