Lifetime allowance protections—quick guide
Produced in partnership with Danny Tsang and Louise Waldron of Simmons & Simmons
Lifetime allowance protections—quick guide

The following Pensions guidance note Produced in partnership with Danny Tsang and Louise Waldron of Simmons & Simmons provides comprehensive and up to date legal information covering:

  • Lifetime allowance protections—quick guide
  • Introductory legislation
  • What does the protection do?
  • Lump sum protections
  • Interaction between protections
  • What other conditions must be met to rely on the protection?
  • Effect of future increases to Lifetime Allowance
  • Reducing protection
  • Losing protection
  • Auto-enrolment
  • more

This Practice Note summarises the characteristics of the different forms of lifetime allowance (LTA) protections.

For detailed information on each of the LTA protections see Practice Notes:

  1. Individual Protection 2016 (IP 2016)

  2. Fixed protection 2016 (FP 2016)

  3. Individual Protection 2014 (IP 2014)

  4. Fixed protection 2014 (FP 2014)

  5. Fixed protection 2012 (FP 2012)

  6. Enhanced protection

  7. Primary protection

For more information on the lifetime allowance generally, see Practice Note: The lifetime allowance.

Introductory legislation

Type of protection Introduced by
Individual Protection 2016 (IP 2016) Finance Act 2016, s 19, Sch 4, Pt 2 (Section 19 being the provision which reduced the Lifetime Allowance from £1.25m to £1m with effect from 6 April 2016).

Individual Protection regime given statutory effect (under the provisions of the Provisional Collection of Taxes Act 1968) from 6 April 2016 by Budget Resolution 13, which was passed on 22 March 2016, prior to the coming into force of the FA 2016 (which received Royal Assent on 15 September 2016).
Fixed Protection 2016 (FP 2016) Finance Act 2016, s 19, Sch 4, Pt 1 (Section 19 being the provision which reduced the Lifetime Allowance from £1.25m to £1m with effect