Desperately seeking enhanced protection?


Enhanced protection is potentially hugely advantageous because it provides an exemption from the lifetime allowance (LTA) charge when benefits come into payment. In contrast, primary protection simply raises the threshold at which the LTA charge will apply. Given this, the Finance Acts 2004 / 2005 set several trip wires which, if triggered, will mean enhanced protection disappearing in a puff of smoke. We look at some of the ways that could happen.

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