Fixed protection 2012 (FP 2012)

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Published by a LexisNexis Pensions expert
Practice notes

Fixed protection 2012 (FP 2012)

Copyright © 2025 LexisNexis

Published by a LexisNexis Pensions expert

Practice notes
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THIS PRACTICE NOTE RELATES TO REGISTERED PENSION SCHEMES

Through Schedule 18 of the Finance Act 2011, the government introduced an allowance protection regime to accompany the reduction in the Lifetime allowance from £1.8m to £1.5m on 6 April 2012. This allowance protection regime, known as Fixed protection 2012 (FP 2012), is the original form of fixed protection introduced. FP 2012 is the subject of this Practice Note.

The original aim of FP 2012 was to offer transitional protection to individuals who might have already built up pension savings in the expectation that the standard lifetime allowance would remain at least at £1.8m. While the lifetime allowance was abolished with effect from 6 April 2024, FP 2012 continues to provide some transitional protection in terms of an individual’s entitlement to (i) the lump sum allowance, (ii) the lump sum and death benefit allowance, and (iii) a tax-free lump sum. For further information, see The benefits of fixed protection 2012, below.

Before 6 April 2023, individuals benefiting from FP 2012 were unable to continue to accrue benefits without

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Fixed protection definition
What does Fixed protection mean?

Following the reduced lifetime allowance, HMRC introduced rules about ‘fixed protection’. When the Lifetime Allowance (LTA) was reduced to £1.5m on 6 April 2012 a new form of protection became available to prevent people from being disadvantaged. This is known as ‘fixed protection’ and enables anyone (other than those individuals with either Primary Protection (PP) or Enhanced Protection (EP) with dormant PP) to apply for an LTA of £1.8m.

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