Pensions Lifetime Limit Reduction
From 6 April 2016, the Lifetime Allowance will be reduced from £1.25m to £1m. Legislation for the reduction and the protection regimes (Fixed and individual protection 2016) will be included in Finance Bill 2016.
Those who are willing to forego future pension contributions may elect to retain the current Lifetime Allowance (Fixed Protection). The alternative is to lock in the value at 5 April 2016 while retaining the ability to contribute in future (Individual Protection).
Pension scheme members will not be able to apply for protection until after April 2016. HMRC recommends that individuals who want to rely on FP2016 should consider the arrangements they will need to make to stop accruing benefits after 5 April 2016.
Contact Nigel Landsman or Katharine Arthur for further details:
Head of Private Client
T: 020 7969 5549
Head of Tax
T: 020 7969 5610