PTM164200 - Information and administration: the member must provide information about any enhanced allowance protection they have
As of 6 April 2024 there is no longer lifetime allowance. If you are looking for information about protections, enhancement factors and the lifetime allowance charge please see these pages on The National Archives.
If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives.
Glossary |
Regulation 11 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
A member may have a form of protection against the lifetime allowance as follows:
- primary protection
- enhanced protection
- fixed protection
- fixed protection 2014
- fixed protection 2016
- individual protection 2014
- individual protection 2016
- enhancement factor following a transfer from a recognised overseas pension scheme
- enhancement factor in relation to a relevant overseas individual
- enhancement factor in respect of pension credit rights
If a member wants to rely on a form of allowances protection they must give the scheme administrator the reference number issued by HMRC in connection with the relevant form of allowances protection.
If a member who has individual protection 2014 (IP 2014) or individual protection 2016 (IP 2016) wants to rely on that form of protection they must also give the scheme administrator details of the relevant protected amount.
Scheme administrators may also choose to ask the member for:
- a copy of the relevant protection certificate, or reference number for those with fixed protection 2016 or indiviudal 2016 (as HMRC does not issue a certificate for these protections), or
- details of the enhancement factor if the member has primary protection or any other kind of enhancement factor.
This requirement is not covered by the regulations but the scheme administrator will need this information to correctly calculate the amount liable to the lifetime allowance charge.
Section 261 Finance Act 2004
The member may be liable to a penalty if a member fraudulently or negligently:
- provides false information about the allowance protection, or
- produces or makes available an inaccurate document or certificate in connection with their lifetime allowance protection
and as a result the member’s lump sum allowance, lump sum death benefit allowance or maximum pension commencement lump sum would be greater than it actually is.
PTM160800 gives more information about how the penalty is calculated.