SIPP closure advice please

dinger

I am over 55 years old and wish to take my money out of my stock market SIPP under the new pension rules which come into force soon. I've seen both the 27th March and the 6th of April quoted as the effective date?

I took the 25% tax free lump sum out a couple of years ago so the SIPP is now in drawdown and despite not having taken any further monies have been charged £100 + VAT for the privilege. That on top of the annual admin fees of £300 + VAT. I recognise that my withdrawal will be treat as income for tax and national insurance purposes. I also recognise that there will be restrictions on re-investing the lump should I wish to open a further SIPP. Owing to my circumstances I think it may be possible to withdraw it over two tax years to avoid tax and national insurance.

I am a house person at the moment and likely to be for a number of years. I say a house person because I am not married. I live with and I am supported by my working girl friend. I do have a small net income of about £3300 which is mostly rental income from a property I own and there is a little gross interest included in that from an NS&I account.

I understand my personal allowance will be £10,600 by time the new rules come into effect. However, the lower earnings limit is £112 per week or £5824 for national insurance contributions. I understand that I will have to keep my first withdrawal below that to be exempt from paying it. However, my first task is to remove my money from the stock market SIPP to avoid the hefty annual admin charges. I am therefore looking for a cheap SIPP provider to facilitate my plan.

I would appreciate it if someone could scrutinise my thought processes for any flaws in my understanding of the situation and hopefully recommend a suitable SIPP provider for me.

Thank you for reading... if you got this far :-)

zagfles

You don't pay NI on pension income.

kidmugsy

Hargreaves Lansdown have published their charges for the new system - why not visit their website and have a look? My first impression was favourable.

dinger

Thanks you two.

Kidmugsy, yes, I have been with HL before for an ISA and their service was excellent so it is definitely one for me to consider. Thanks again.