Hl sipp tfls

Chisser

I have a good 1995 NHS Pension that I will take at 60.

I also have a HL SIPP with approx value of £40,000 and I am 55
in 2 months time. I wish to take exactly 25% as a tax free lump sum
(to help my daughter) at 55 and leave the remainder invested. I know
I must not exceed 25%.

1. Will HL make it difficult for me to do this even though I already have
other adequate pension provision?
2. Will HMRC tax me at a very high rate only for me to have to claim it
back later?

Thank you

zagfles

Chisser wrote: »

I have a good 1995 NHS Pension that I will take at 60.

I also have a HL SIPP with approx value of £40,000 and I am 55
in 2 months time. I wish to take exactly 25% as a tax free lump sum
(to help my daughter) at 55 and leave the remainder invested. I know
I must not exceed 25%.

1. Will HL make it difficult for me to do this even though I already have
other adequate pension provision?

No. Should be quite easy.

2. Will HMRC tax me at a very high rate only for me to have to claim it
back later?

Thank you

If you just take the TFLS they won't tax you at all.

dunstonh

1. Will HL make it difficult for me to do this even though I already have
other adequate pension provision?

No. Providers do not make it difficult.

2. Will HMRC tax me at a very high rate only for me to have to claim it
back later?

No. The tax free lump sum is tax free.

Chisser

Thanks both

marlot

Chisser wrote: »

...

I also have a HL SIPP with approx value of £40,000 and I am 55
in 2 months time. I wish to take exactly 25% as a tax free lump sum
(to help my daughter) at 55 and leave the remainder invested. I know
I must not exceed 25%.

1. Will HL make it difficult for me to do this even though I already have
other adequate pension provision?
2. Will HMRC tax me at a very high rate only for me to have to claim it
back later?

Thank you

I've just crystallised an HL pension. It was by far the easiest of the five pensions I've put into payment, and the quickest. Just ring the pensions team and they'll run through a risk assessment with you and send you the form (it's done by post). Took about a week.

Instead of just having a SIPP account with them, after crystallisation you have both a SIPP (with 0 in it) and a 'SIPP Income Drawdown' account.

If you sell investments just before crystallisation to free up your 25%, the other investments move straight from the SIPP to the SIPP Income Drawdown.


No tax was paid.

Albermarle

I've just crystallised an HL pension. It was by far the easiest of the five pensions I've put into payment, and the quickest.

It would be interesting to know the problems and the companies involved with the other four ? ( as I will have to start doing something similar soon)