A method of protecting a member‘s fund plus all future investment growth from the lifetime allowance charge.
When pension legislation changed on 6 April 2006, anybody with a pension fund likely to exceed the lifetime allowance could register for enhanced protection.
Enhanced Protection could also be used in tandem with tax-free lump sum protection where the tax-free lump sum protection entitlement was over £375,000.
Enhanced protection is lost if contributions are made to any pension arrangements on or after 6 April 2006. Transfers of benefits from a member’s other pension arrangements can normally be made without enhanced protection being lost but advice must be taken as this is not always the case. It is no longer possible to apply for this protection.