Glossary · UK
What is Individual Protection 2016?
A pension protection that preserved a personalised lifetime allowance based on pension value at April 2016.
Full Definition
Individual Protection 2016 let individuals with pension savings valued above a set level on 5 April 2016 register a personal lifetime allowance equal to that value (capped at a maximum), rather than accepting the reduced standard allowance. Unlike Fixed Protection 2016, holders of Individual Protection 2016 could continue contributing to or accruing further pension benefits without losing the protection. As with Fixed Protection, it continues to be relevant after the lifetime allowance charge was abolished because it still sets the individual's tax-free lump sum entitlement.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.