Fixed protection 2014 (FP 2014)

Copyright © 2025 LexisNexis
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Practice notes

Fixed protection 2014 (FP 2014)

Copyright © 2025 LexisNexis

Produced in partnership with Wyn Derbyshire of gunnercooke LLP

Practice notes
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THIS PRACTICE NOTE RELATES TO REGISTERED PENSION SCHEMES

Through Schedule 22 to the Finance Act 2013 (FA 2013), the government introduced an allowance protection regime to accompany the reduction in the Lifetime allowance from £1.5m to £1.25m on 6 April 2014. This allowance protection regime, known as Fixed protection 2014 (FP 2014), takes after the fixed protection regime introduced on 6 April 2012 (known as fixed protection 2012 or just ‘fixed protection’). FP 2014 is the subject of this Practice Note.

The original aim of FP 2014 was to offer transitional protection to individuals who, before 6 April 2014, had already built up pension savings which exceeded £1.25m, or who had planned to do so in the expectation that the lifetime allowance would remain at least at £1.5m. While the lifetime allowance was abolished with effect from 6 April 2024, FP 2014 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.

Wyn Derbyshire
Wyn Derbyshire

Partner, gunnercooke LLP

Wyn is a partner at gunnercooke LLP and specialises in pensions, trust and employment law in all industry sectors, dealing with the transactional, advisory and documentation aspects.

He also has wide experience of the pensions implications of heavyweight corporate transactions and flotations, the issues arising from the establishment and merger of pension schemes, and sex equalisation and other discrimination issues in respect of benefits provided by pension schemes. In addition, he provides advice to pension scheme trustees generally.

Recent transactions include advising Amcor on pension matters relating to the acquisition of Alcan business and the acquisition of Northern Foods PLC by Boparan Holdings.

He is a co-author (with Stephen Hardy and Stephen Maffey) of TUPE: Law and Practice, published by Spiramus Press (now in its 4th edition), and co-author (with Stephen Hardy and David Wicks) of Money & Work, published by Spiramus Press in August 2007. He has also written several other books and numerous articles on a variety of legal and non-legal topics.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
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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