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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15980
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a certificate for enhanced protection from the lifetime

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I have a certificate for enhanced protection from the lifetime allowance charge related to my pension, issued in 2006. Do I need to make a further application related to Fixed Protection 2014?

Thank you

Mike Laker

Can you tell me what the value of your pension funds is now and what the value was on 5 April 2006 please.
Customer: replied 4 years ago.

I am in the NHS pensions scheme and so I do not know accurately the size of the pot. In 2007 I received, prior to tax, £90,000 and this year it is £105,000


Leave this with me while I draft my answer.

Hi again.

Without the figures I asked for I cannot be precise about whether you should apply for fixed protection or individual protection or both but I can give you an overview of your options.

You will need to consult your NHS pension administrator or an independent financial adviser as your options are dependent on the level of protection that you already have which would have been based on the 5 April 2006 value of your pension fund and the value of your pension fund now. It may be that fixed protection 2014 or individual protection 2014 will give you less cover than your enhanced protection already gives you.

If you have primary or enhanced protection, you cannot have fixed protection 2014 without giving up your primary or enhanced protection. As I stated above, this may not be worth your while if your current enhanced protection exceeds the limit under fixed protection 2014 which will be £1.5 million if you apply by 5 April 2014 (£1.25 million after 5 April 2014) and the limit under individual protection 2014 which will be equal to the value of your pension fund as at 5 April 2014 up to a maximum value of £1.5 million. You can apply for individual protection 2014 after 5 April 2014.

Read the notes here and here for more information, try using the lifetime allowance checking tool here and then contact your NHS pension fund administrator for a detailed appraisal of the protection you have and whether it would be in your interest to apply for fixed or individual protection or both.

I hope this helps but let me know if you have any further questions.

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Hi again.

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