Glossary · UK
What is Fixed Protection 2016?
A pension protection that fixed an individual's lifetime allowance at the 2016 level in exchange for stopping contributions.
Full Definition
Fixed Protection 2016 was one of several HMRC protections introduced when the pension lifetime allowance was cut in April 2016, letting individuals lock in a lifetime allowance at the pre-cut level. In return, the individual generally had to stop active pension accrual and further contributions from 6 April 2016 onward — any further saving into a money purchase scheme, or continued accrual in a defined benefit scheme, would invalidate the protection. Although the lifetime allowance itself was abolished from April 2024, the protections still matter because they continue to affect the tax-free lump sum limits available to those who hold them.