Lump Sum when you have 2 pensions

Spjm

I have been offered a tax free lump sum of £120k from my final salary pension and I have £50k in a HL Sipp. If I take both pensions at the same time and only take £70k lump sum from my final salary pension can I take all the £50k from my sipp tax free. If that is possible how do I do this please. Many thanks.

ffacoffipawb

Spjm wrote: »

I have been offered a tax free lump sum of £120k from my final salary pension and I have £50k in a HL Sipp. If I take both pensions at the same time and only take £70k lump sum from my final salary pension can I take all the £50k from my sipp tax free. If that is possible how do I do this please. Many thanks.

No, this is not possible as the SIPP is a standalone pension not related to your other pension scheme.

bigadaj

Spjm wrote: »

I have been offered a tax free lump sum of £120k from my final salary pension and I have £50k in a HL Sipp. If I take both pensions at the same time and only take £70k lump sum from my final salary pension can I take all the £50k from my sipp tax free. If that is possible how do I do this please. Many thanks.

Why do you want the money, can you take pension instead of the lump sum and if so how much pension would you get.

Pensions are all held separately, so you can take 25% of the sipp, the rest will be taxed as earnings. If you take more than the 25% from the sipp then that restricts what you can put into a pension in future.