Individual Protection 2014
As the 2016/17 tax year end approaches, along with ISA and other tax planning deadlines, an important pension planning window will also close.
Individual Protection 2014 allowed individuals with pension pots valued at over £1.25m to protect their value against the reduced Lifetime Allowance (LTA). This LTA protection option has become more relevant as we have seen a further reduction in the LTA to £1m from 6th April 2016.
Individuals will have up to the 5th April 2017 to apply for Individual Protection 2014 and protect pension pots up to a maximum capital value of £1.5m. For members in the NHS 1995 Section Scheme this would be relevant for anyone who had an NHS pension value at or greater than £54,347.82 p.a., plus the additional lump sum of £163,043.47, on 5th April 2014 (for 1995 Scheme members the conversion for LTA purposes is a multiplier of 20 x pension, plus the lump sum).
Applications for Individual Protection 2014 made after 5th April 2017 will not be accepted and therefore it is important to check your pension value and make this application to HMRC, if relevant, before 6th April 2017.
For further information please contact your MMM Financial Advisor.