LSA query
Irene
Member
sorry, it's been a long day and I'm just looking for a sense check.
A client, who has no protection, took TFC of £100,000 in August 2023. Due to rounding, documentation stated 37.26% of LTA.
He has taken a further £30,000 of TFC in 2024.
By my reckoning, he has taken £130,000 of his £268,275 therefore £138,275.
The provider is now telling me that he initially used 37.27%, therefore he has deemed to have received TFC of £99,986.09 (rather than£100,000). Plus his £30,000 , therefore he has received £129,986.09 not £130,000.
As such, he can take a further £138,288.91.in total he could receive £268,288 rather than £268,275.
Is this right?
A client, who has no protection, took TFC of £100,000 in August 2023. Due to rounding, documentation stated 37.26% of LTA.
He has taken a further £30,000 of TFC in 2024.
By my reckoning, he has taken £130,000 of his £268,275 therefore £138,275.
The provider is now telling me that he initially used 37.27%, therefore he has deemed to have received TFC of £99,986.09 (rather than£100,000). Plus his £30,000 , therefore he has received £129,986.09 not £130,000.
As such, he can take a further £138,288.91.in total he could receive £268,288 rather than £268,275.
Is this right?
Comments
I don't think it matters what he has taken if the scheme now paying tax-free cash is relying on the LTA percentage declaration from another scheme.
400000/1073100 = 0.3727 = 37.27%
1073100 * 37.27% * 25% = 99986.09
If they're taking the £30,000 as £30,000, and adding that on, then it all sounds okay to me.