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FSAVC cashing in.
coxwell
Posts: 59 Forumite
I have an FSAVC with l&g worth approx 15k and a deferred company pension which is good. I am 56 and would like to cash in the FSAVC after April 2015.
Importantly my income is less than my personal tax allowance.
To avoid paying any tax can I take 25% tax free and a lump sum and then take the remainder the following year?
eg £3750 as 25% tax free with a lump sum of £5625 in 2015 and then £5625 in 2016.
Importantly my income is less than my personal tax allowance.
To avoid paying any tax can I take 25% tax free and a lump sum and then take the remainder the following year?
eg £3750 as 25% tax free with a lump sum of £5625 in 2015 and then £5625 in 2016.
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Comments
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I have an FSAVC with l&g worth approx 15k and a deferred company pension which is good. I am 56 and would like to cash in the FSAVC after April 2015.
Importantly my income is less than my personal tax allowance.
To avoid paying any tax can I take 25% tax free and a lump sum and then take the remainder the following year?
eg £3750 as 25% tax free with a lump sum of £5625 in 2015 and then £5625 in 2016.
You should be able to do that but you may need to transfer to another provider if L&G don't offer it.0 -
To avoid paying any tax can I take 25% tax free and a lump sum and then take the remainder the following year?
L&G have published their offerings on most of their legacy plans. It is unlikely you will be able to do that with L&G on the existing plan as you are asking to apply drawdown terms to a contract there was never built to offer drawdown. Many of their legacy plans will allow partial withdrawals (on a 75%/25% basis of tax) but will not offer drawdown which is what you are after (drawing 0%/25% now).
So, a transfer is likely to be required unless partial withdrawals are ok for you and the plan offers that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I have spoken to L&G and as dunstonh quite correctly stated this drawdown option is not available.
I would therefore need a transfer into where/what ?
I am obviously looking for a low cost solution so any help greatly appreciated.0 -
http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates
Might a SIPP suit? You could ring HL and check out your plans?0
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