Summary of transitional protections
6 April 2024
Key points
- Transitional protections were made available to protect against tax charges when the lifetime allowance (LTA) it was introduced in 2006. Further protections were introduced each time the LTA was reduced.
- The LTA was abolished on 6 April 2024, but the protection remains relevant as it now dictates the amount of ‘lump sum allowance’ (LSA) and ’lump sum and death benefit allowance’ (LSDBA) available
- It's still possible to apply for fixed protection 2016 and/or individual protection 2016
- Before 6 April 2023, only primary protection and individual protection (all versions) allowed further funding
- It's possible to have more than one type of protection
Jump to the following sections of this guide:
Fixed protection 2016
Eligibility | Anyone who doesn't have enhanced protection, primary protection, fixed protection 2012 or fixed protection 2014 - regardless of the size of their benefits. Any active individual protection 2014 will take precedence, with FP2016 dormant until such time, if ever, that IP2014 is lost. |
Registration deadline | 5 April 2025 |
Lump sum allowance (LSA) | £312,500 |
Lump sum and death benefit allowance (LSDBA) | £1.25M |
Ongoing funding allowed? |
Before 6 April 2023, no 'relevant benefit accrual' was allowed. Since 6 April 2023, as long as FP2016 was registered by 15 March 2023 and the protection remained valid on 5 April 2023, relevant benefit accrual can recommence without losing FP2016. But if FP2016 was registered after 15 March 2023, the protection will be lost if there is any relevant benefit accrual. |
Can protection be lost? |
Before 6 April 2023, it was lost if:
Since 6 April 2023, FP2016 cannot be lost provided it was registered by 15 March 2023 and had not been invalidated or revoked before 6 April 2023. However, those who registered FP2016 after 15 March 2023 can still lose protection, as previously. |
Individual protection 2016
Eligibility |
Only those who had total benefits (crystallised and uncrystallised) valued above £1M on 5 April 2016 and don't have primary protection or individual protection 2014. Any active enhanced or fixed protection (any version) will take precedence, with IP2016 dormant until the other protection is lost. |
Registration deadline | 5 April 2025 |
Lump sum allowance (LSA) |
The lower of:
|
Lump sum and death benefit allowance (LSDBA) |
The lower of:
|
Ongoing funding allowed? | Yes |
Can protection be lost? | The standard LTA began to rise again from 6 April 2017. Where the standard LTA became higher than the individual’s protected LTA under IP2016, the protection ceased to exist. Otherwise, IP2016 can only be lost on divorce. If pension benefits are subject to a pension debit, the value of their benefits on 5 April 2016 is recalculated. If the recalculated value drops below £1,073,100 then the protection will be lost. |
Fixed protection 2014
Eligibility | Anyone who didn't have enhanced protection, primary protection or fixed protection 2012 - regardless of the size of their benefits. |
Registration deadline | 5 April 2014 |
Lump sum allowance (LSA) | £375,000 |
Lump sum and death benefit allowance (LSDBA) | £1.5M |
Ongoing funding allowed? |
Before 6 April 2023, no 'relevant benefit accrual' was allowed. Since 6 April 2023, relevant benefit accrual can normally recommence without losing FP2014. |
Can protection be lost? |
Before 6 April 2023, it was lost if:
Since 6 April 2023, FP2014 normally cannot be lost. |
Individual protection 2014
Eligibility |
Only those who had total benefits (crystallised and uncrystallised) valued above £1.25M on 5 April 2014 and don't have primary protection. Any active enhanced or fixed protection (2012 or 2014) will take precedence, with IP2014 dormant until the other protection is lost. |
Registration deadline | 5 April 2017 |
Lump sum allowance (LSA) |
The lower of:
|
Lump sum and death benefit allowance (LSDBA) |
The lower of:
|
Ongoing funding allowed? | Yes |
Can protection be lost? | Only on divorce. If pension benefits are subject to a pension debit, the value of their benefits on 5 April 2014 is recalculated - if this is below £1.25M then the protection is lost. |
Fixed protection 2012
Eligibility | Anyone who didn't have enhanced protection or primary protection - regardless of the size of their benefits. |
Registration deadline | 5 April 2012 |
Lump sum allowance (LSA) |
£450,000 |
Lump sum and death benefit allowance (LSDBA) | £1.8M |
Ongoing funding allowed? |
Before 6 April 2023, no 'relevant benefit accrual' was allowed Since 6 April 2023, relevant benefit accrual can normally recommence without losing FP2012. |
Can protection be lost? |
Before 6 April 2023, it was be lost if:
Since 6 April 2023, FP2012 normally cannot be lost. The exception to this rule is the unlikely situation where an individual has successfully managed (by concession) to register for FP2012 after 15 March 2023 - they can still lose protection, as previously. |
Enhanced protection
Eligibility | Anyone - regardless of the size of their benefits. |
Registration deadline | 5 April 2009 |
Lump sum allowance (LSA) |
No registered tax-free cash - £375,000 Registered tax-free cash - capped at the amount that could have been paid on 5 April 2023 |
Lump sum and death benefit allowance (LSDBA) | The value of uncrystallised funds on 5 April 2024 |
Ongoing funding allowed? |
Before 6 April 2023, no 'relevant benefit accrual' was allowed Since 6 April 2023, relevant benefit accrual can normally recommence without affecting the protection. |
Can protection be lost? |
Before 6 April 2023, it was be lost if:
Since 6 April 2023, enhanced protection normally cannot be lost. The exception to this rule is the unlikely situation where an individual has successfully managed (by concession) to register for enhanced protection after 15 March 2023 - they can still lose protection, as previously. |
Primary protection
Eligibility | Only those who had benefits (crystallised and uncrystallised) valued above £1.5M on 5 April 2006. |
Registration deadline | 5 April 2009 |
Lump sum allowance (LSA) | No registered tax-free cash - £375,000 Registered tax-free cash - the registered amount x 1.2 |
Lump sum and death benefit allowance (LSDBA) |
£1.8M + (£1.8M x primary protection factor) |
Ongoing funding allowed? | Yes |
Can protection be lost? |
Only on divorce. If pension benefits are subject to a pension debit, the enhancement factor has to be recalculated. Primary protection will be lost if the pension debit reduces the value of the member's pension rights on 5 April 2006 to a figure that's below £1.5M. |
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