Contact Us
  // Open Popup ID 1058 if any element with .header--nav__button
document.querySelectorAll('.header-nav-button').forEach( (el) => {
	el.addEventListener('click', () => {
		bricksOpenPopup(XXX)
	})
})
document.querySelectorAll('.header-nav--parent').forEach(li => {
  const toggle = li.querySelector('.brx-submenu-toggle');
  if (!toggle) return;

  const a = toggle.querySelector('a');
  const button = toggle.querySelector('button');
  if (!a || !button) return;

  // Move the label text into the button (prepend before the SVG)
  const labelText = document.createTextNode(a.textContent);
  button.prepend(labelText);

  // Remove the <a> tag
  a.remove();
});

Fixed Protection: A potential way to save £155,000 additional pensions taxation

Alistair Cunningham
Alistair Cunningham

It was reported in our Trade Press this week that HMRC are suprised over the lower take-up of Fixed Protection.

In brief, Fixed Protection will be relevant to those at, above or even close to the Lifetime Allowance, soon to be £1.5m. Due to the way Final Salary schemes are valued, this could translate into a £75,000 per annum pension; but the limit is likely less if tax-free sum lumps are taken into account.

£155,000 additional tax is at stake, and despite some industry pressure to defer the deadline, individuals have to have a form back to HMRC no later than 5th April 2012 – less than 6 weeks away. No further pension contributions should be made, with special rules applying to Final Salary benefits.

The issue is further compounded as once the lifetime allowance moves to £1.5m the government have already confirmed no increases will allowed until 2016. In effect, if an individual achieves 7% investment growth from now until 2016, they should consider Fixed Protection on funds around £1m!

Fixed Protection and the Lifetime Allowance advice doesn’t need to be complicated, and a suitably qualified professional should be able to give an indication of the advisability of applying from Fixed Protection. This is not to say it’s Black & White, but you should be able to make an informed decision.

Fixed Protection and advice around the Lifetime Allowance doesn’t need to be complicated, and a suitably qualified professional should be able to give an indication of the advisability of applying for Fixed Protection. This is not to say it’s Black & White, but you should be able to make an informed decision. Alistair Cunningham, the author of this mailshot, holds several advanced pension qualifications, is a Chartered Financial Planner and Pensions Specialist. He has won several awards, including the FT Adviser Individual Pensions/SIPP IFA of the Year 2011.

Alistair Cunningham

Contact the Author

Alistair, a founding director of Wingate Financial Planning, specialises in complex client cases, particularly owner-managed businesses, pensions, and retirement planning. He is a member of the Wingate Investment Committee and a Chartered Financial Planner, Fellow of the Personal Finance Society, and member of STEP and the Chartered Institute of Taxation.

Other Articles

Are you ready to make informed decisions about your money?

Contact Us

Speak to a Chartered Financial Planner

Wingate is an independent firm of Chartered Financial Planners based in Caterham, Surrey.

Our initial conversation is held at our cost and gives us both the opportunity to decide whether working together is likely to be valuable.

Contact us to arrange an initial conversation.

Footer Contact Form

Please refer to our Privacy Statement to see how we use your personal information.