Taking money out of SIPP

Smosal

I transferred my pension funds to a SIPP with AJ Bell and at the same time, I took my 25% TFLS. I have paid in £2880 per annum, for the last 3 years, but not withdrawn anything. This year I have unused personal allowance of £8000, so I intend to make a withdrawal from my SIPP to use this up. However I am confused about the additional tax free allowance that I may have created. How do I get my hands on it? Do I withdraw £8000 and simply declare this on my tax return? Or should I take out more and declare the excess on my tax return as being TFLS money?

xylophone

The transferred pension ("old sipp" ) is now crystallised as you have taken your PCLS.

The contributions you have made over the past three years ("new sipp") are in a pension not yet crystallised so that you can take a 25% PCLS from this.

You can then take your £8000 from either "old sipp"or "new sipp".

You should check the time scale for doing this with the provider.

Smosal

Thank you, that makes perfect sense