HMRC published updated guidance, a new tool and forms relevant to pension scheme members who qualify and can apply for ‘fixed protection 2014’ of their pension savings lifetime allowance.

By way of reminder the standard lifetime allowance for pensions falls to £1,250,000 from £1,500,000 on 6 April 2014. Fixed protection 2014 will work in a similar way to the existing fixed protection regime introduced in April 2012 and will mean those availing of it can fix their lifetime allowance at £1.5 million. This means the individual can take pension savings worth up to £1.5 million without paying the lifetime allowance charge. Applications for fixed protection 2014 must be made before 6 April 2014.

Fixed protection 2014 is not available to those who already have primary, enhanced or fixed protection. In addition, fixed protection 2014 will be lost if someone:

• has a contribution paid to any of your money purchase pension pots;
• builds up new benefits in a defined benefits or cash balance pension pot above a set amount;
• joins a new pension scheme – unless transferring pension savings from one of their existing schemes into the new scheme;
• starts saving in a new pension pot either under an existing pension scheme or a new pension scheme.

More information is available on the HMRC website.