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Protecting your benefits

See what you can do to protect your benefits from a Lump Sum Allowance and Lump Sum and Death Benefit charge

Important note: From 6 April 2024, the government abolished the framework that set out the limit on the amount you can take from your pension benefits and savings before you’re charged tax, known as the Lifetime Allowance.

In its place, the government introduced two new allowances, the Lump Sum Allowance (LSA) and Lump sum and Death Benefit Allowance (LSDBA), which took effect from 6 April 2024. The LSA places a limit of £268,275 on the total amount of certain tax-free lumps sums that you will be able to receive before marginal rate taxation applies, and the LSDBA places a limit of £1,073,100 on the total amount of tax-free lump sums that can be paid in respect of an individual before marginal rate taxation applies.

Certain LTA protections may still be relied upon to provide you with the right to a higher amount of tax-free cash and are still an option until 5 April 2025. For additional help and support visit our guidance and financial advice page.

Two options to choose from

There are two types of protection you can currently apply for:

  • Individual protection 2016
  • Fixed protection 2016

The deadline for applying for both fixed individual protection 2016 and fixed protection 2016 is 5 April 2025. After this date, you will not be able to apply for either of these protections.

How to apply for protection

You can apply for both types of protection on the HMRC website. The deadline for applying for both types of protection is 5 April 2025, after which you will not be able to apply for either of these protections.

When you apply, your IP2016 or FP2016 (and any other previous LTA protections) will show in your personal tax account.

You can apply for both protections at the same time. This could be useful if you want to stop building your pension savings and benefits but might start again if your circumstances change.

Previous protections

Before IP2016 and FP2016, there were other protections available – but you can’t apply for these any more. You can find out more about these in the pensions tax manual on the HMRC website. If you're not sure if you've got an earlier protection, you may want to check with your financial adviser.

Need some advice or guidance

If you want to seek guidance or take financial advice on the options available to you, visit the guidance and financial advice page. You’ll find a range of resources to support your planning and you can also find information on how to access an independent financial adviser.