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If you are looking for information about IP prior to 6 April 2024, please see the Ìý

Individual protection 2014 (IP14)

Paragraph 1 Schedule 6 Finance Act 2014

On 5 April 2014, Individuals who had pension savings in excess of £1,250,000 could apply to HMRC for IP14 to protect them from the lifetime allowance charge when those rights come into payment after 5 April 2014.

As of 6 April 2024, lifetime allowance has been abolished, but an individual is entitled to have their lump sum allowance and lump sum death benefit allowance protected. â¶Ä�

Individuals did not need to have already built-up pension savings of more than £1,500,000 to apply.

Lump sum allowance with IP14

For an individual with IP14, the lump sum allowance will be the less of £375,000 or 25% of the individual’s relevant amount.

Lump sum and death benefit allowance with IP14

For an individual with IP14, their lump sum and death benefit allowance will be the lesser of £1,500,000 or the individual’s relevant amount.

If an individual had any benefit crystallisation event occur prior to 6 April 2024 then they will need to review the standard transitional calculations for their lump sum allowance and lump sum and death benefit allowance with IP14 at PTM174600. â¶Ä�

Individual protection 2016 (IP16)

Paragraph 9 Schedule 4 Finance Act 2016�

On 5 April 2016, Individuals who had pension savings in excess of £1,000,000 could apply to HMRC for IP16 to protect them from the lifetime allowance charge when those rights come into payment after 5 April 2016.

As of 6 April 2024, lifetime allowance has been abolished, but an individual is entitled to have their lump sum allowance and lump sum death benefit allowance protected. â¶Ä�

Individuals did not need to have already built-up pension savings of more than £1,250,000 to apply. â¶Ä�

Lump sum allowance with IP16

For an individual with IP16, the lump sum allowance will be the less of £312,500 or 25% of the individual’s relevant amount.

Lump sum and death benefit allowance with IP16

For an individual with IP16, their lump sum and death benefit allowance will be the lesser of £1,250,000 or the individual’s relevant amount.

If an individual had any benefit crystallisation event occur prior to 6 April 2024 then they will need to review the standard transitional calculations for their lump sum allowance and lump sum and death benefit allowance with IP16 at PTM174600. â¶Ä�

Losing or reduction of individual protection

An individual with either IP14 or IP16 who becomes subject to a pension debit as a result of a pension sharing order may have their level of protection reduced or lose protection altogether.