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Fixed protection
On 6th April 2012 the maximum pension benefit that an individual can accrue is being reduced from £1.8m to £1.5m.
If you expect your pension savings to be more than £1.5m when you come to take your benefits you can apply for Fixed Protection to protect them from this reduction.
The application must be received by HMRC by 5th April 2012.
To keep the benefit of fixed protection you cannot make any further pension contributions.
If you have a defined benefits scheme ("final salary") then you will lose the benefit of Fixed Protection if you have not already taken benefits and the value of the uncrystallised benefits increases in any tax year by more than a specified percentage.
If you have Enhanced or Primary Protection then you are not affected by this change.
These are brief notes for guidance only. Please do not hesitate to contact me if you wish to discuss how the change applies to you and whether an application should be submitted before the deadline.
