The Lifetime Allowance (LTA) was abolished from 6 April 2024.
Since 2006, there were various different types of LTA protection. The last of these was available for individuals to apply for up to 5 April 2025.
If you hold one of these protections, you must let us know. Certain protections could be lost in some circumstances. Please ensure that you check any protections previously awarded are still valid by visiting the government website GOV.UK. These protections may still be of use.
There are 2 tax free allowances in place of the LTA:
- Lump Sum Allowance (LSA)
- Lump Sum and Death Benefit Allowance (LSDBA).
The LSA and LSDBA may be higher if you hold one of the previous LTA protections. Please speak to your tax advisor.
Please be aware that protections can be lost. Please speak to your tax advisor. Find out about losing your pension protected allowances on the GOV.UK website
LTA protection applications and McCloud remedy
Although applications for Individual Protection 2016 and Fixed Protection 2016 closed on 5 April 2025, an extension may be granted to 5 April 2027 where a scheme member is eligible for the McCloud remedy.
To be eligible for the McCloud remedy with the Kent Pension Fund, you must at least have membership within the period April 2014 to March 2022.
If you have membership within this period and think that you might need to apply for Individual Protection 2016 and Fixed Protection 2016, please contact us for confirmation of your eligibility.