Are pension fund charges part of drawdown ?

wooder

Just wondering if the monthly charges taken from a personal pension by the pension company (Aviva) are considered part of the flexi drawdown for taxation purposes ?

If they meet the charges by selling some of the investment, for example if there is not enough cash in the cash account, then would tax be payable on the cash generated to meet those charges ?

AnotherJoe

You aren't drawing down that money. It would be no different to you selling an investment and retaining the cash. What's measured is the money you remove from the "pot" not what the admin charges are.

wooder

Ok, thanks for the reply.....

..... so, once the pension is crystallised and I remove the 25%tfls I could then withdraw £958.33p per month from the remaining pot without exceeding the £11500 personal tax free allowance (I have no other taxable income). If Aviva then sell x number of my units each month to pay the admin charge I s'pose technically that's taking money from the pot ? and would that then take me over the tax free limit ?

Triumph13

Nope, the only thing that the taxman is interested in is the cash that goes from Aviva to you. What happens in Aviva stays in Aviva.