Pensions  

How to navigate protection and the lifetime allowance

  • Describe the application conditions for enhanced and primary protection
  • Calculate the lifetime allowance usage under each form of protection
  • Calculate the maximum tax-free lump sum amounts
CPD
Approx.30min

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In this situation, the enhanced protection takes precedence, and the primary protection is considered ‘dormant’. The certificate will read “Enhanced Protection with Dormant Primary”.

Martin Jones is technical team leader at AJ Bell

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. To which figure is the LTA enhancement factor applied when calculating the maximum LTA under primary protection?

  2. On an enhanced protection certificate, how is the protected tax-free lump sum normally shown?

  3. In the absence of lump sum protection, how is the maximum tax-free lump sum entitlement normally calculated under primary protection?

  4. What was the main application condition for primary protection?

  5. What was the application deadline for both enhanced protection and primary protection?

  6. What is the main benefit to a member of holding enhanced protection?

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You should now know…

  • Describe the application conditions for enhanced and primary protection
  • Calculate the lifetime allowance usage under each form of protection
  • Calculate the maximum tax-free lump sum amounts

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