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Lifetime Allowance (LTA) – Information for NHS Workers

The following information may assist with you if you work in the NHS.

Individual and Fixed Protection

There are two forms of protection for savers to elect with regards to the LTA in 2016. These protections are Fixed Protection 2016 and Individual Protection 2016.

Fixed Protection 2016 (FP2016)

FP2016 offers protected LTA of £1.25m and there is no minimum fund value required to apply for this. Contributions into money purchase schemes and any benefit accrual must cease by 5 April 2016. Benefit accrual includes:

  • any pension contributions paid to a defined contribution scheme, this includes the NHS Money Purchase AVC Scheme; or
  • pension growth in NHS pension benefits that exceed a relevant percentage for that tax year

Individual Protection 2016 (IP2016)

IP2016 is only available to those with funds valued at £1m or more as at 5 April 2016 and protects the value of the fund up to £1.25m. The difference with individual protection is that contributions and/or benefits can accrue.

HMRC have confirmed that there will be no application deadline for these provisions, nor will they issue certificates for these. In addition to this, it will not be possible to apply for 2016 protection until after April 2016, individuals who want to rely on FP2016 need to think about ceasing to accrue benefits after 5 April 2016.

Please contact us on 0151 933 3400 if you would like further information or assistance.

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