What you need to know about fixed protection

The Lifetime Allowance (LTA) reduces to £1.5m from April 2012 and a new form of protection - ‘Fixed Protection' (FP) - is available. Individuals with FP get an LTA of £1.8m, not £1.5m. If the standard LTA ever increases above £1.8m the higher LTA will apply. Someone with a £1.7m fund at retirement, and with FP, won't suffer an LTA charge. Without FP the charge would be £110,000 on the lump sum excess - £200,000 x 55%. Important criteria apply to benefit from FP: •No more ‘accrual' from 6 April 2012 •FP applications must be with HMRC by 5 April 2012 - there are no exceptions ...