Enhanced PCLS from an EPP & LTA

Hi all. New to the board and was hoping someone could kindly give me a bit of guidance on pension benefits as I've heard conflicting answers!

Basically, we have a client who has an EPP worth £660,000 which includes enhanced PCLS of £338,500 - this has been confirmed by the provider. He also has an uncrystallised SIPP worth £665,000. He has Fixed Protection 2014 at £1.5mil.

The client is thinking about withdrawing the enhanced PCLS of £338,500 from his EPP which will crystallise c44% of his £1.5mil LTA. Then, transfer the remaining capital into his SIPP. His remaining LTA is 56% of £1.5mil, so I thought 25% of the remaining LTA would be £210,000. Total PCLS from all sources = c£548,500.

However, one pension provider said his maximum PCLS from all sources will always be £375,000 ie 25% of the £1.5mil LTA.

So I'm not sure which is right. Can anyone confirm which is right?

Thank you for your help! Kris


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