Hargreaves Lansdown SIPP drawdown - how does it work?

woodberry

HL charge you to change the arrangements, which seems quite reasonable. However, if there is no cash in the account then they won't/can't make a payament.

i originally set up a quarterly payment (but it could have been monthly or annual) of a quarter of the GAD maximum and then sold investments near the date if I wanted to draw down. If not I stayed fully invested and so HL made no payment.

However, I have now switched to leaving the drawdown SIPP untouched and instead taking the equivalent income from capital in my Share account. No income tax to pay on that while the Drawdown account grows taxfree (at least the bonds/PIBs part of it does).

I have told HL to stop making payments so incurred a one-off charge of £12.