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    • fjh
    • By fjh 16th Mar 17, 9:14 PM
    • 57Posts
    • 6Thanks
    fjh
    SIPP & tax Advice
    • #1
    • 16th Mar 17, 9:14 PM
    SIPP & tax Advice 16th Mar 17 at 9:14 PM
    I previously posted regarding possibility of moving my Final Salary Pension to a 'SIPP'

    But I have Just discovered another 'Option' rather than a) leave Final salary pension alone or b) TF to drawdown I have found I have an option of just 'transfering ' @ 35k in my AVC to a SIPP
    As its over 30k I know I need IFA to sign off .
    Would I be able to then draw this out of SIPP as part of my 25% tax free ( Final salary Pension TF value is 885K)- this appeals as it would still give me some time to decide if I should TF the main pension to Drawdown
    Any suggestions re a good priced SIPP provider would be welcome
    Thanks G
Page 1
    • kidmugsy
    • By kidmugsy 16th Mar 17, 9:28 PM
    • 9,261 Posts
    • 6,076 Thanks
    kidmugsy
    • #2
    • 16th Mar 17, 9:28 PM
    • #2
    • 16th Mar 17, 9:28 PM
    Any suggestions re a good priced SIPP provider would be welcome
    Originally posted by fjh
    At 35k Hargreaves Lansdown would give you a good combo of user-friendliness and cost.

    Why is it better to transfer the AVC than to get it all out tax-free when you activate the FS pension? Once it's in the SIPP you'll get only 25% of it tax-free.
    • fjh
    • By fjh 17th Mar 17, 6:15 AM
    • 57 Posts
    • 6 Thanks
    fjh
    • #3
    • 17th Mar 17, 6:15 AM
    • #3
    • 17th Mar 17, 6:15 AM
    I was looking to just use the AVC if possible for Home improvements etc, still not sure about TF of Final salary and reiterated in 5 years time so still have some time to decide( I accept TF value may alter)
    Is it possible to take the AVC as part of the overall 25% tax free then start to draw those funds?
    • Linton
    • By Linton 17th Mar 17, 8:43 AM
    • 7,636 Posts
    • 7,403 Thanks
    Linton
    • #4
    • 17th Mar 17, 8:43 AM
    • #4
    • 17th Mar 17, 8:43 AM
    Each pension's 25% tax free is completely separate. There isnt an "overall 25% tax free". Except in the case of some DB schemes which allow the DB 25% to be taken from the associated AVC. You would need to check what the rules are for your DB scheme.
    • AlanP
    • By AlanP 17th Mar 17, 12:43 PM
    • 734 Posts
    • 495 Thanks
    AlanP
    • #5
    • 17th Mar 17, 12:43 PM
    • #5
    • 17th Mar 17, 12:43 PM
    Does your main scheme allow you to take the AVC pot fully tax free as part of a (DB+AVC) *25% calculation as if it does paying tax on 75% of it is an avoidable expense?

    If you do transfer it and withdraw anything over the 25% tax free you will be hit by the MPAA and limited to 4k annual pension contribution limit?- this doesn't apply to DB pension contributions as far as I understand it.
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