TTFAC and QROPS repatriation

benjaminfabi

Hi,

As an example, in simple terms, a member transferred £750,000 to a QROPS when the LTA was £1.5m. They have since transferred back (pre 6/4/24).

The transfer used 50% of the LTA at the time. And when it came back in 2021/22 let's say it was worth £1,073,100, so the enhancement factor was 1.

As I understand it:

• Their available standard LSDBA is 50% of £1,073,100 i.e. £536,550.
• This is increased by the LSDBA multiplied by the factor of 1 i.e. £536,550 + £1,073,100 = £1,609,650
• The factor has no impact on the LSA i.e. as standard it is still 50% of £268,275 (accounting for the 50% used by the transfer).
• a TTFAC would restore the LSA to £268,275 and the LSDBA to £2,146,200.

Can anyone see if I've done anything wrong there?

les_cameron

That's my conclusion too (haven't checked your sums though but your theory is solid)

benjaminfabi

Thanks. I did just check my sums and I think the last bullet is wrong, as the TTFAC will only restore the LSDBA by the amount of the LSA not taken. In this case, if the BCE8 used up 50% of the LTA, the TTFAC restores 12.5% of the standard LSDBA to both the LSA and LSDBA.

My goodness this is confusing!

les_cameron

The niche stuff can be a bit but the majority it's all far simpler