| Type of protection |
Start date |
Application deadline |
Qualifying criteria |
LTA protection & excess LTA tax charge |
Benefit accrual test |
BCE events |
Registered Tax Free Cash (TFC) |
Not registered TFC |
Other protections can have with |
Other protections cannot have with |
| Enhanced Protection |
06/04/2006 |
3 years (5/4/09) |
Any amount allowed at 5/4/06 |
no excess if don’t break rules of EP |
must stop all DC contribs. DB contribs cannot exceed max limit |
If protection is maintained within appropriate limit test there is none |
Option to register TFC at % TFC available at A-day. This carries through as a % |
25% of £1.5M if protection maintained |
PP IP14 IP16 |
FP12 FP14 FP16 |
| Fixed Protection 12 |
06/04/2012 |
05/04/2012 |
LTA £1.8M, no qualifying criteria to apply, but qualifying conditions to maintain |
Excess LTA tax charge above £1.8M, 55% on Lump Sum |
at no point can the Capital value increase by more than the Relevant Percentage |
Calculate % of SLA used (post 2012 use £1.8M) at each BCE and deduct % from £1.8M to give remaining LTA % |
N/A |
25% of £1.8M |
IP14 IP16 |
PP EP FP14 FP16 |
| Fixed Protection 14 |
06/04/2014 |
05/04/2014 |
LTA £1.5M, no qualifying criteria to apply, but qualifying conditions to maintain |
Excess LTA tax charge above £1.5mn, 55% on Lump Sum |
at no point can the Capital value increase by more than the Relevant Percentage |
Calculate % of SLA used at each BCE and deduct % from £1.5M to give remaining LTA % |
N/A |
25% of £1.5M |
P14 IP16 |
PP EP FP12 FP16 |
| Fixed Protection 16 |
06/04/2016 |
Starts July 2016 |
LTA £1.25M, no qualifying criteria to apply, but qualifying conditions to maintain |
Excess LTA tax charge above £1.25mn, 55% on LS |
at no point can the Capital value increase by more than the Relevant Percentage |
Calculate % of SLA used at each BCE and deduct % from £1.25M to give remaining LTA %. |
N/A |
25% of £1.25M |
IP14 IP16 |
PP EP FP12 FP14 |
| Primary Protection |
06/04/2016 |
3 years (05/04/2009) |
Pension benefits more than £1.5M at A-day |
Enhancement to LTA expressed as a multiplier of SLTA (called the PP factor) |
Can accrue benefits but if personal LTA exceeded, LTA charge will apply at 55% taken on a LS or25% taken as Income |
Always shown as £ never % Before 2012 revalue BCE (x £1.5M/SLA at BCE), After 2012, its just amount of BCE, no revaluation |
Option to register TFC available at A- day and it is stated as a £number, revalued until 2012 x 1.8/1.5 or 1.8/SLA |
25% of £1.5M (even with primary protection in place) |
EP |
FP12 FP14 FP16 IP14 |
| Individual Protection 14 |
06/04/2014 |
3 years 05/04/2017 |
Pension benefits were between £1.25M and £1.5M on 5/04/14 |
Individual LTA (IP number) between £1.25mn and £1.5mn |
Can accrue benefits but if individual LTA (IP number) is exceed LTA charges will apply |
Calculate % of SLA used at each BCE and deduct % from IP |
N/A |
25% of IP Number |
EP FP12 FP14 FP16 |
PP IP16 |
| Individual Protection 16 |
06/04/2016 |
(05/04/2019?)not specified yet but likely 3 years |
Pension benefits were between £1M and £1.25M on 5/04/16 |
Individual LTA (IP number) between £1mn and £1.25mn |
Can accrue benefits but if individual LTA (IP number) is exceed LTA charge will apply |
Calculate % of SLA used at each BCE and deduct % from IP number to give remaining % |
N/A |
25% of IP Number |
EP FP12 FP14 FP16 |
PP IP14 |
