Scheme Specific Tax-Free Cash Query with new LTA regimes
We have a client with an EPP with scheme specific lump sum protection. We've got the A day values and the calculations done. Pot is now worth around £845,000 of which c£530,000 can be taken as a tax-free lump sum. No protections and hasn't taken any other pensions but is retiring soon.
What we can't get our heads around is whether she'll be able to take the full £530,000 "tax free" from April 6th 2024 next year when the new LSA and LSDBA system comes into play? From a tax point of view, are they better/worse taking it now or next tax year, or no difference?