Enhanced Tax-Free Cash (Fixed Protection 2016)
WRB
Member
Hi everyone,
I'm working on a case where the client has ETFC. The entitlement figures I hold are a couple of years old, but I’ve recently received an updated valuation. Can I apply the existing ETFC percentage to the new valuation, or is it necessary to request an updated ETFC figure from the provider?
Many thanks,
W
Comments
What do you mean ETFC? The only TFC that works on a percentage basis is someone with enhanced protection who had rights in excess of £375,000 as at 5 April 2006.
I suspect you mean scheme specific protected tax free cash - if you have the values from the first calculation and you have the current fund value you will be able to do the sums yourself.
It's basically the A day protected amount revalued to today then 25% of the post A-day growth added on.
Read here
https://www.mandg.com/adviser/tech-matters/pensions/lump-sum-options/scheme-specific-protected-tax-free-cash
And calculator here
https://www.mandg.com/adviser/tech-matters/tools-and-calculators/tax-free-cash-calculator