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tax when over LTA

If a pension pot is crystallised with a view to putting it into drawdown and all the LTA has previously been used up then tax is payable.

My question is if there is no lump sum taken from this then is the 25% payable straight away or only when money taken out?

Comments

  • HappyHarry
    HappyHarry Posts: 1,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Immediately upon crystallisation.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • anselld
    anselld Posts: 8,728 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Payable from the funds at the point of crystallisation.
  • Flugelhorn
    Flugelhorn Posts: 7,621 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    thanks - that is very helpful
  • Mick70
    Mick70 Posts: 777 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    When people refer to crystallisation does that just mean when you make your first withdrawal ?

    Many thanks ,
    Thick Mick :)
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