Anyone with an HL SIPP gone into Drawdown?

RealtimeBlues

I have an HL SIPP and can't get my head around the "going into Drawdown" process with them.
I have 5 share stocks and 3 funds.
1. I presume when you request drawdown with HL, HL open a drawdown account which is viewed on the account page along with my SIPP and ISA accounts--is that correct?

2. I want to do a phased drawdown, so if for example I wish to take 25% cash from stock A its just a matter of transferring that stock A from my SIPP account into the Drawdown account? then selling 25% of stock A and remove tax free cash. Or do I have to cash the whole stock in take the 25% and re-invest the other 75% in the drawdown account? I am presuming its the former?
Then the remaining 75% of stock A remains in Drawdown, and of course further withdrawals of that stock A are then taxed on withdrawal. The rest of the stocks and funds stay in the SIPP account until I phase another stock into drawdown at my leisure?

3. At the moment, I do not need to take out any of the remaining 75% of stock A that would be in drawdown, so if that grows by say 25%, I presume its still taxed on the final amount (sometimes you have to ask the silly question!)

AnotherJoe

By phased drawdown, do you mean UFPLS?

If so thats on their help pages. (search for that acronym)

I did full drawdown which is pretty simple and explained here https://www.hl.co.uk/retirement/drawdown/how-it-works, and in that case you end up with two SIPPs, the original and one called "SIPP income drawdown". I think, though it didnt apply in my case as i did 100%, you say which funds you want in each part, and you deal with each part individually after that. I just made sure i had enough cash to get my 25% tax free out and all the other funds and cash ended up in the new drawdown SIPP.

Its probably best to call them and talk it through with them, they are good on the phone.

Qwoin

I find HL great at giving any explanation I want about my SIPP, why not call them?

speedyrite

1. Yes.
2. More or less yes. Make sure you have the cash amount that you want to take as the 25% TFC already available in the SIPP when you submit the application form. You will also need to give them instructions as to which assets that they will move from your HL SIPP a/c to the new HL SIPP Income Drawdown a/c that they will create as part of the process (i.e. the remaining 75% of the total amount being moved into drawdown).
3. Further withdrawals (i.e. as "regular income') from the HL SIPP Income Drawdown a/c will be subject to income tax, depending on your tax code, as and when you make them (obviously no further tax free lump sums can be taken from this part of your HL SIPP).
Hope that helps.