Does UFPLS count as PCLS for recycling rule

Reluctantpensioner

Does the 25% tax-free portion of a UFPLS withdrawal count as PCLS for recycling rules?

If I crystallise and enter drawdown will any 25% tax-free portion count as PCLS for recycling rules?

tacpot12

Follow the flow-chart here:

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/

ermine

Reluctantpensioner wrote: »

Does the 25% tax-free portion of a UFPLS withdrawal count as PCLS for recycling rules?

Probably, but just how big is your pension fund that you have this fear? By definition is you are using UFPLS you aren't taking your PCLS all in one go anyway. If the amount of tax-free lump sum received in any one year is < £7500 then recycling hasn't happened


so if you are drawing < £30k p.a. under UFPLS then don't worry. I guess if you are up on the 1M LTA limit then you'd be crystallising £33k p.a. for a 30-year retirement if you didn't have any investment gain. But seriously, if you have a pension pot that much then maybe hire an IFA to give you personalised, regulated financial advice rather than a bunch of people on t'internet.

If I crystallise and enter drawdown will any 25% tax-free portion count as PCLS for recycling rules?

Well, yes, that's what it is, though you aren't using UFPLS if you crystallise all your fund. Look at the other conditions on that about recycling - you have to work pretty hard to fall foul of that.

Reluctantpensioner

Thanks, but unfortunately that doesn't help.
I know I am unlikely to have all the yeses to actually be recycling.
But in order to get my pension I must make some individual legal statements.
One asks about the size of tax free lump sums.
Hence my question.