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L&G in letter blunder on tax-free cash

Legal & General has admitted mistakenly sending letters to customers warning of year-long delays in calculating tax-free cash on EPPs.

It says the maximum processing time is actually 12 weeks, not 12 months, as the letter states. L&G says it is struggling to perform the calculations as quickly as usual because of a significant increase in requests since A-Day.

The statement follows a complaint from Amersham Financial Planners IFA Ian Smith who received the letter after submitting an urgent request to L&G to calculate tax-free cash for one of his clients about to reach retirement.

He says he sent completed questionnaire forms on June 5 to enable L&G to perform the calculations but the forms were rejected because they were the pre-A-Day versions.

He sent another letter containing the updated forms on August 15, which L&G says it did not receive. The same letter was resent in September.

L&G says it expects to process Smith’s request by September 29 and “normal service levels” should resume by the end of October.

A spokesman says: “It appears the letter went out in error to a small number of customers. We are writing to these customers to explain the error.”

But Smith says: “This is ludicrous. My client has already passed his retirement date and has been left in limbo.”


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