If individuals have pension savings (DB and DC schemes) of more than £1.25 million, as at 5 April 2014, IP 2014 will allow them to protect those savings (up to a value of £1.5 million), as long as they don’t have ‘primary protection’.
IP 2014 will therefore give individuals a protected lifetime allowance equal to the value of their pension savings on 5 April 2014 subject to an overall maximum of £1.5 million. Unlike FP 2014 there are no restrictions on future pension savings, although if they exceed your protected lifetime allowance the excess will be subject to the lifetime allowance charge.
This is a ‘buy while stocks last’ opportunity to get protection against the LTA up to £1.5m.
There is a deadline of 5 April 2017 to submit IP14 online applications to HMRC.
This can be done here.
Who can have IP14?
If you are a member of a registered pension scheme (including a deferred member) and/or a relieved member of a relieved non-UK pension scheme you can have IP 2014, provided that on 5 April 2014, your pension rights in such schemes are valued at more than £1.25m and
• you did not have valid primary protection on 5 April 2014 and
• your application for IP 2014 is received by HMRC by 5 April 2017 at the latest.
On March 8, Phillip Hammond delivered the Spring Budget 2017. Among those most affected by the changes – which included the self-employed – were those who wish to set up Qualifying Recognised Overseas Pension Schemes (QROPS). Here is a brief overview of how the Budget 2017 has affected QROPS and what it may mean for you.