Transitional protection

By Tolley
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The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Transitional protection
  • Introduction
  • The need for transitional protection
  • Primary protection
  • Enhanced protection
  • The lifetime allowance from 6 April 2011
  • Fixed protection
  • The lifetime allowance from 6 April 2014
  • The lifetime allowance from 6 April 2016
  • Member options

Introduction

There is a lifetime limit on the total amount of pension value that can benefit from tax relief (see the Lifetime allowance and the lifetime allowance charge guidance note). Testing against the lifetime allowance takes place at a benefit crystallisation event. Generally, a benefit crystallisation event occurs when benefits are taken.

The levels at which the lifetime allowance have been fixed are as follows:

Tax YearAmount
2019/20£1,055,000
2018/19£1,030,000
2016/17–2017/18£1,000,000
2014/15–2015/16£1,250,000
2012/13–2013/14£1,500,000
2010/11–2011/12£1,800,000
2009/10

More on Pension contributions: