Enhanced protection | Practical Law

Enhanced protection | Practical Law

Enhanced protection

Enhanced protection

Practical Law UK Glossary 4-204-0653 (Approx. 5 pages)

Glossary

Enhanced protection

Introduced by the Finance Act 2004, one of the forms of transitional protection available for a member of a registered pension scheme who had accrued pension rights before 6 April 2006. A member had to register with HM Revenue & Customs for enhanced protection before 6 April 2009. The protection was available whether or not the value of the member's pension savings exceeded the standard lifetime allowance at 6 April 2006. The effect of enhanced protection is to disapply the lifetime allowance for pension savings accrued before 6 April 2006. But a member with enhanced protection who makes any further pension contributions or accrues any further pension benefits beyond specified minimum levels after 6 April 2006 automatically loses his claim to enhanced protection. See also primary protection, fixed protection and fixed protection 2014.