Pension transfer

jamesd

nrsql wrote: »

The suggestion is move everything to a legal an general scheme and convert to a drawdown taking 25% tax free (my requirement) leaving about 45k in drawdown. I don't expect to take anything out for several years.

Why not take money out? Two options:

1. To circumvent the GAD limit, take the income and invest it in the same way via a S&S ISA or outside a tax wrapper if your whole ISA allowance is used. Drawback of this is tax at your marginal tax rate while still working.

2. To get a second chunk of tax relief contribute the income to another pension or another part of the same one. Then move that into drawdown with the rest when you want to take an income, after taking the new 25% lump sum. Gets you full income tax relief and maybe salary sacrifice savings as well.

If you just want to increase capital and income 2 is the way to go.

mania112

£600 is 1%, that's cheap.