Sipps

EdInvestor

What tax concession do you mean?If you transfer the money to a SIPP you won't get any extra tax relief as you've already received it on the contributions, you are just moving them around now.

If you are making new contributions you will get the tax relief as usual.

dunstonh

In house AVCs can enhance occupational scheme benefits. This is why AVCs (post A day) are treated as occupational pension transfers rather than personal pension transfers (FSAVCs come under personal pension transfers).

Moving money from the AVC to a SIPP is no guarantee that you will make more money. After all, you choose the funds for the AVC and you will choose the funds for the SIPP. Did you pick the right spread before and would you pick the right spread going forward? The charges are almost certainly going to be higher so you better have confidence in your ability to pick investments.

david78

I don't think you can transfer your AVC into a personal pension plan if you are still a contributing member to the occupational scheme. You can only transfer FSAVC plans (which are now personal pensions really.)

EdInvestor

No doubt one day sabelu will actually explain his situation and what he wants to do (and why), whereupon the answer will be crystal clear to all.

:rolleyes:

sabelu

EdInvestor wrote: »

No doubt one day sabelu will actually explain his situation and what he wants to do (and why), whereupon the answer will be crystal clear to all.

:rolleyes:

Sorry to offend Ed didnt realise this forum subscribed to personal comments, however, what sabelu is seeking is advice to make a qualified decision on what to do with the sum assigned to the AVC. Albeit he is a little unclear/confused thats the strength of this site surely to get other impartial views.

The facts:

No further tax relief can be gained from the monies. But presumably under new legislation a 20% withdrawal can happen at 50 if I do decide to open a SIPP.
The investment has done reasonably well where it is 50% growth since Oct 03. Could have done better in other funds but I'm not unhappy, however would wish to explore other avenues.

Finally Ed I am grateful for the answers to my ?'s from yourself and others and hope the information continues to flow.

EdInvestor

sabelu wrote: »

But presumably under new legislation a 20% withdrawal can happen at 50

Tax free cash is 25% from 50, from 55 after 2010. Fund must be put into income drawdown, though nil income can be taken.

It's always better to try to outline the basic problem as straightforwardly as possible, rather than ask questions related to what you think might be the case.Otherwise you may get a lot of irrelevant information, as has happened on this thread.