Can I empty a small pension pot?

Linton

NorthernGeezer wrote: »

So you dont automatically get a tax code when you withdraw from a pension, you have to request one?

You do get a taxcode issued automatically but HMRC cannot issue it until after the first payment because they dont know in advance that a payment is going to be made, nor who is going to make it.

POPPYOSCAR

Blackavar wrote: »

I'm 64, retired with no expectation of income with various pension pots which I will take UFPLS amounts from until SP kicks in andwhen I will move pots to a SIPP.
I have an old work money purchase type pension worth about £12K.
Am I right in thinking that I can close this and withdraw all the money without paying tax? This would be helpful as the massive QA I have to go through getting UFPLS from current provider is quite onerous.
My taxable income is zero so this should surely be okay?
Thanks i advance for any input.

Am I wrong in thinking that the total of all those pension pots must be no more than £30000 in order to be able to do this?

Silvertabby

POPPYOSCAR wrote: »

Am I wrong in thinking that the total of all those pension pots must be no more than £30000 in order to be able to do this?

Only applies to DB schemes (trivial commutation).

NorthernGeezer_2

"You do get a tax code issued automatically but HMRC cannot issue it until after the first payment because they don't know in advance that a payment is going to be made, nor who is going to make it"

I took my first payment of £900 from my pension pot 4 weeks ago but I've heard nothing from my pension provider or HMRC yet.

POPPYOSCAR

Silvertabby wrote: »

Only applies to DB schemes (trivial commutation).

Thank you.

So if you have say £20,000 in a DB scheme and £40,000 in a DC scheme you cannot take the £20,000 out but you can the £40,000?

Blackavar

Thanks. Yes I have my forecast and have nealy 2 years to go until SP starts. Not merged pots as I can take out of each per calendar year. Want to drag out as much as I can (but not 25%) before SP kicks in and paying tax is an issue.

Dazed_and_confused

NorthernGeezer wrote: »

"You do get a tax code issued automatically but HMRC cannot issue it until after the first payment because they don't know in advance that a payment is going to be made, nor who is going to make it"

I took my first payment of £900 from my pension pot 4 weeks ago but I've heard nothing from my pension provider or HMRC yet.

Have you checked your personal tax account to make sure HMRC definitely know about this payment yet?

Silvertabby

“ Only applies to DB schemes (trivial commutation).
Originally posted by Silvertabby

POPPYOSCAR wrote: »

Thank you.

So if you have say £20,000 in a DB scheme and £40,000 in a DC scheme you cannot take the £20,000 out but you can the £40,000?

Yes. I know it sounds daft, but it's because the 'pension freedoms' didn't/don't apply to DB schemes.