The lifetime allowance for pensions will be reduced again to £1m starting April 6, 2016, affecting more clients and creating a need for advice. As with previous reductions, HMRC will offer protection options to prevent clients exceeding the new limit, including Individual Protection 2016 and Fixed Protection 2016. While details have not been finalized, the protections are expected to function similarly to those offered in 2014.
The lifetime allowance for pensions will be reduced again to £1m starting April 6, 2016, affecting more clients and creating a need for advice. As with previous reductions, HMRC will offer protection options to prevent clients exceeding the new limit, including Individual Protection 2016 and Fixed Protection 2016. While details have not been finalized, the protections are expected to function similarly to those offered in 2014.
The lifetime allowance for pensions will be reduced again to £1m starting April 6, 2016, affecting more clients and creating a need for advice. As with previous reductions, HMRC will offer protection options to prevent clients exceeding the new limit, including Individual Protection 2016 and Fixed Protection 2016. While details have not been finalized, the protections are expected to function similarly to those offered in 2014.
ALLOWANCE PROTECTION READY FOR ANOTHER ROUND? Chris Jones
The lifetime allowance reduces again from
6 April 2016 to 1m, accompanied by another round of protection. A further reduction means many more clients will be affected and in need of advice. We look at the options available. Whilst at the time of writing we dont have the technical details, HMRC pension schemes newsletter 70 confirmed that there will be the same options as in 2014 with the same conditions. The only difference will be the application process and deadlines which are yet to be decided, however, there is a suggestion that the time limits may be removed altogether. Depending on the value of their funds as at 5 April 2016, clients have up to five choices, Individual Protection 2016, Fixed Protection 2016, both forms of protection, or no protection. In addition, clients over their minimum retirement age could also consider the option of crystallising benefits before 6 April 2016. Lets start with an overview of the two protection options we expect to be available.