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Drawdown - Explained
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Spot on You can do it in as many tranches as you like, but the equation is always that for every tranche you crystallise 25% is tax free (unless you are over LTA already) and 75% becomes crystallised.Ah , right . I think I!!!8217;m starting to get it . Thankyou very much for your very helpful replies . Would I be right in saying that whatever sum is left uncrystalised you could always take 25% tax free but if you did the entire amount would become cristalised ?
Yes if you die before 75.Would I also be correct in saying that any funds left at death that were crystalised would be subject to tax whereas if they were uncrystalised they could be inherited tax free ?
Indeed they can.Lastly , could any funds that are crystalised be invested in exactly the same products as uncrystalised , many thanks ?0 -
Thankyou Triumph13 this makes sense . So after the age of 75 crystalised or uncrystalised it all becomes taxable on death . So I guess it might make sense to take 25% and crystallise what is left before age 75 .0
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