On 6 April 2016 legislation was introduced to reduce the Lifetime Allowance (LTA) to £1 million (from £1.25 million in 2015/16) and provide two new transitional protections; namely, Fixed Protection 2016 (FP2016) and Individual Protection 2016 (IP2016). These new transitional protections are similar to Fixed Protection 2014 (FP2014) and Individual Protection 2014 (IP2014).
This briefing note sets out:
- Who can apply for FP2016 and IP2016;
- How the new protections work in practice; and
- How the interim application process operates.
It closes with a reminder that it is still possible to apply for Individual Protection 2014, up until 5 April 2017.