Decrease In Pension Lifetime Allowance

In April 2012 there will be a change in the tax relief for pension contributions. The Lifetime Allowance, the maximum tax favoured fund you can have in a pension scheme, goes from £1.8 million to £1.5 million as of 6 April 2012.

The existing maximum fund (£1.8 m) would give a man aged 65 at retirement age a pension of circa £75,000 a year. If your existing pension fund has a value in excess of £1.5m you should apply to HM Revenue & Customs (HMRC) to ring-fence pension for tax purposes, this is known as 'fixed protection'.
If like many, have more than one pension, you need to request a 'Lifetime Allowance Factor' (a valuation of the fund), from all the companies whom you hold a pension with.

Application for fixed protection must arrive with HMRC by 5 April 2012, and it must be made on the relevant application form. Applications after this date will not be accepted. Where granted fixed protection will result in further tax-allowable pension contributions being bared.