Losing your pension protected allowances
Source: gov.uk (2025-04-05)

How you can lose your protected allowances on pension savings, how to avoid this and how to tell HMRC if you lose protection.

Protected allowances

Protections were introduced to protect your pension savings from previous reductions in the standard Lifetime Allowance. Since the abolition of lifetime allowance, they may also allow you to have a higher tax-free pension commencement lump sum when you retire.

You can find out more about how to check your protected allowances (https://www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance).

There are certain conditions that you’ll need to meet in order to rely on your protection if you hold:
- enhanced protection
- fixed protection
- fixed protection 2014
- fixed protection 2016
This will depend on when you applied. If you do not meet these conditions, you may lose your protection.

The conditions for losing protected allowances vary depending on when HMRC received your application.

Applications before 15 March 2023

If your successful application was received before 15 March 2023, the conditions you need to meet to rely on your protection are relevant for the following periods:
- enhanced protection — 6 April 2006 to 5 April 2023
- fixed protection — 6 April 2012 to 5 April 2023
- fixed protection 2014 — 6 April 2014 to 5 April 2023
- fixed protection 2016 — 6 April 2016 to 5 April 2023
Applications on or after 15 March 2023

If your successful application was received on or after 15 March 2023, the conditions you need to meet to rely on your protection are relevant from:
- enhanced protection — 6 April 2006
- fixed protection — 6 April 2012
- fixed protection 2014 — 6 April 2014
- fixed protection 2016 — 6 April 2016
You must continue to meet these conditions after 5 April 2023, otherwise you may lose your protection.

How you can lose your protection

You can lose enhanced protection or any type of fixed protection if:
- you make new savings in a pension scheme
- you are enrolled in a new workplace pension scheme
- you transfer money between pension schemes in a way that does not meet the transfer rules
- you’ve got enhanced protection and, when you take your pension benefits, their value has increased more than the amount allowed in the enhanced protection tax rules — this is called ‘relevant benefit accrual’
- you’ve got fixed protection and the value of your pension pot in any tax year grows at a higher rate than is allowed by the tax rules — this is called ‘benefit accrual’
You can lose primary protection, individual protection 2014 or individual protection 2016 if you have a pension debit because you receive a discharge notice due to a pension sharing order, which takes you below the minimum value required for the protection.

If you have a pension debit, you must inform HMRC within 60 days.

Informing HMRC

You must tell HMRC in writing (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/pension-scheme-enquiries) if you think you might have lost your protection.

We’ll need:
- your full name, address and National Insurance number
- the exact date that you lost protection
- the reason why you lost protection (for example benefit accrual, auto enrolment)
- the type of pension arrangement (defined contribution or defined benefit)
- your original certificate (if you still have it) — these were not issued for IP2016 or FP2016
Opting out of your pension scheme to avoid losing your protected allowances

You can ask your employer whether they’re likely to automatically enrol you in a workplace pension. To make sure you do not lose protection, you can either:
- opt out of most schemes (https://www.gov.uk/workplace-pensions/if-you-want-to-leave-your-workplace-pension-scheme) within a month
- ask not to be enrolled in some schemes — your employer may need evidence of your protected your allowances protection