£2880>£3600

uk1

I'd appreciate some pointers as to the cheapest and easiest and fastest ways with preferably providers in order to open personal pensions for my wife and myself in order to deposit £2880 in each for the tax top up and then to cash them straight away. Would plan to do this annually until they "stop it".

Many thanks,

Jeff

AnotherJoe

If you cash it all straight away,taking out all your money,i think most providers will give you a big charge wiping out your tax gains, also there will be several weeks before you get the tax uplift anyway.

Hargreaves Lansdown do good deals on this I understand as long as you don't take it all out. I do this for Mrs another Joe, though at the moment it's just accumulating. They reclaim the tax on a fixed schedule roughly every couple of months from memory.

uk1

AnotherJoe wrote: »

If you cash it all straight away,taking out all your money,i think most providers will give you a big charge wiping out your tax gains, also there will be several weeks before you get the tax uplift anyway.

Hargreaves Lansdown do good deals on this I understand as long as you don't take it all out. I do this for Mrs another Joe, though at the moment it's just accumulating. They reclaim the tax on a fixed schedule roughly every couple of months from memory.

Thanks,

Would you mind some indication of charges and how simple it is to set up? Is it all managed on line? I guess you have no idea what the charge would be if I promptly removed £3599 as soon as the tax arrived?

Jeff

AnotherJoe

Im sure it's all on the HL website UK1, I'm just a customer not an employee

There are others, Cavendish comes up often here as well. I don't know what minimum sums you'd need to leave in either case.

bigadaj

I think virgin might be good for this unusually.

They are normally criticised for being expensive but don't think they have fees for closure smother high percentage charges would be irrelevant.

Not sure how many times they would allow you to do it though.

missile

I set up HL SIPP prior to April 5. On recommendation from this site (jamesd), I set up to withdraw 25% tax free and the balance as 12 monthly payments. Thus avoiding charge for closing the account within 12 months. Works well for me and I intend doing the same prior to April 5 next year.


It is easy to do online. There is a charge if you close account within 12 months, details are here > www.hl.co.uk

uk1

missile wrote: »

I set up HL SIPP prior to April 5. On recommendation from this site, I set up to withdraw 25% tax free and the balance as 12 monthly payments. Thus avoiding charge for closing the account within 12 months. Works well for me and I intend doing the same prior to April 5 next year.


It is easy to do online. There is a charge if you close account within 12 months, details are here > www.hl.co.uk

Thanks. I like this approach. An enhancement to "savings accounts".

Jeff

uk1

I'd apprciate any input with respect to tax treatment. Is it classed as income or is it simply the return of capital?

Thanks,

Jeff

missile

uk1 wrote: »

Thanks. I like this approach. An enhancement to "savings accounts". Jeff

Exactly how I view it. Where else can you get 25% return?

SIPP is subject to same tax rules as any other pension. The 25% lump sum is tax free, but drawdown is liable to tax if over your personal allowance. See HL site for more info. There are some examples. HL do not offer advice, but if you need "clarification" give them a phone / send an e mail. I found them to be most helpful.

uk1

missile wrote: »

Exactly how I view it. Where else can you get 25% return?

SIPP is subject to same tax rules as any other pension. The 25% lump sum is tax free, but drawdown is liable to tax if over your personal allowance. See HL site for more info. There are some examples. HL do not offer advice, but if you need "clarification" give them a phone / send an e mail. I found them to be most helpful.

Thanks. My memory is hazy on this hence the basic questions re tax.

This seems suitable for a nil tax payer but almost useless for tax payers?

Jeff

missile

uk1 wrote: »

Thanks. My memory is hazy on this hence the basic questions re tax.

This seems suitable for a nil tax payer but almost useless for tax payers?

Jeff

Not as beneficial. Do you and OH both have income in excess of tax allowance?