RPSM03100050 - Technical Pages: Protecting pre 6/4/06 pension rights from tax charges: Overview: Primary protection

Primary protection

A claim for primary protection can only be made where an individual's pension and lump sum rights in a tax privileged scheme or contract were valued at more than £1.5 million at 5 April 2006.

Individuals claiming primary protection can continue to make tax relieved contributions or to accrue further benefits under registered pension schemes after 5 April 2006.

Individuals with primary protection have a personal lifetime allowance which is greater than the standard lifetime allowance. This personal lifetime allowance is set by the value of their pension rights on 5 April 2006. The lifetime allowance charge will apply only to benefits paid after their personal lifetime allowance has been used up. Until 5 April 2012, personal lifetime allowances under primary protection were adjusted annually in the same way as the standard lifetime allowance. From 6 April 2012, the personal lifetime allowance is adjusted by reference to £1.8 million where this figure is greater than the standard lifetime allowance applying at the time benefits are taken.

Primary protection is explained in more detail at RPSM03102000