Valuable protection schemes that can help you to safeguard your pension from harsh tax charges are now open for applications and you may require an urgent review of your benefit accruals to be able to apply.

As a result of the recent cut to the lifetime allowance limit – the total amount you can contribute to your pension without triggering an extra tax charge – new pension protections have been introduced by the government which could potentially restore you with a higher overall allowance. In April, the lifetime allowance was cut further to just £1 million following a series of reductions over the last four years.

Fixed Protection 2016 (FP2016) is now available to those who do not already hold a previous version of fixed, enhanced or primary protection. This will allow you to retain a £1.25 million lifetime allowance limit as long as all benefit accrual has been suspended from April. You should check immediately whether you are in a position to apply.

Individual Protection 2016 (IP2016) is available for those that have pension savings in excess of £1 million as at 5 April. Pension savers with this protection are able to carry on contributing to their pension.

As every senior doctor is likely to breach the new allowance due to the very nature of making pension contributions into the NHS scheme over a number of decades, it is important to ascertain your own position.

This is a very difficult area for the busy professional to get right. If you are unsure how to proceed, you should seek help without delay – the tax charge if you breach the lifetime allowance can be up to a staggering 55 per cent. For more detailed help, call one of our advisers on 020 7636 7006.