If less than 25% of the benefits value was available as tax-free cash on 5 April 2006, the maximum tax-free cash available will be the lesser of:
25% of the benefits value when retirement benefits are taken, and
25% of £1.5 million (£375,000).
If the individual is entitled to more than 25% of the standard lifetime allowance/benefits value when they take their retirement benefits, this will be protected as a percentage of the benefits value on 5 April 2006 . The tax-free cash when the benefits are taken will be based on the same percentage of the benefits value as it was on 5 April 2006.