It’s a fix!

HM Revenue & Customs has now released guidance and the application form in respect of Fixed Protection for the Lifetime Allowance.

On 6th April 2012, the Lifetime Allowance for pension savings will fall from £1.8m to £1.5m.

Fixed Protection allows investors to retain the previous Lifetime Allowance of £1.8m and apply this when they take retirement benefits on or after 6th April 2012.

You can apply for Fixed Protection if you have not previously registered for Primary or Enhanced Protection, and you expect your pension benefits to exceed £1.5m in the future.

It will be possible to apply for Fixed Protection until 5th April 2012, although it makes sense to complete this registration process early to ensure you do not miss the deadline.

The suitability of applying for Fixed Protection will depend on your personal circumstances.

If you have a high value pension fund or benefits in a defined benefits pension scheme, you should seek professional independent financial advice to understand the pros and cons of applying for Fixed Protection.

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