The draft Finance Bill (published on 11 December) includes the provisions for Individual Protection in relation to the lifetime allowance. This is to protect people against the fall in lifetime allowance from £1.5m to £1.25m with effect from 6 April 2014.
Individual Protection is available to those with accrued pension savings (pensions in payment and uncrystallised amounts) of between £1.25m and £1.5m as at 5 April 2014. The bulk of the draft legislation sets out how these rights should be valued. The protection is not available to those who already have Primary Protection. Applications must be made before 6 April 2017.
Details of individual Protection can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.