Pensions tax: fixed protection 2016 and individual protection 2016 | Practical Law

Pensions tax: fixed protection 2016 and individual protection 2016 | Practical Law

This note considers the two forms of transitional protection that were created for individuals who might have been adversely affected by the reduction in the standard lifetime allowance for pension saving from £1.25 million to £1 million that took effect at the start of the 2016/17 tax year. Among other things, the note summarises the requirements that individuals need to satisfy to claim fixed protection 2016 or individual protection 2016 and explains how these forms of protection operate following the abolition of the lifetime allowance.

Pensions tax: fixed protection 2016 and individual protection 2016

Practical Law UK Practice Note 6-622-9545 (Approx. 20 pages)

Pensions tax: fixed protection 2016 and individual protection 2016

MaintainedUnited Kingdom
This note considers the two forms of transitional protection that were created for individuals who might have been adversely affected by the reduction in the standard lifetime allowance for pension saving from £1.25 million to £1 million that took effect at the start of the 2016/17 tax year. Among other things, the note summarises the requirements that individuals need to satisfy to claim fixed protection 2016 or individual protection 2016 and explains how these forms of protection operate following the abolition of the lifetime allowance.