Testing growth in multiple drawdown accounts at second LTA test at 75

ffacoffipawb

jamesd wrote: »

They could and can be transferred but merging crystallised pots used to be prohibited. I don't know if it still is.

Crystallised pots can be transferred, but they must be fully transferred. Partial transfers are not allowed. Probably as it (further) complicates future LTA tests I guess.

This is interesting ... https://www.atebconsulting.co.uk/news/merging-flexi-access-drawdown-plans/

However, HMRC have confirmed to me that whilst it is therefore possible for two or more flexi-access arrangements to be merged scheme administrators should be aware “that all related factors such as transfer timing and LTA requirements have to be considered in their own right for each particular merger.”

jamesd

Thanks, nice to know that in theory combining flexi-access is allowed (and capped can be switched to it) but the caveats:

"Verbally, HMRC have admitted to me that because of the requirement to be able to undertake the BCE 5A at age 75 (or the earlier BCE 4 if an annuity is secured from the drawdown funds) as if the two or more drawdown arrangements were still held separately, merging arrangements is likely to cause significant administration issues."

and

"To be clear, the £100,000 increase in the value of Arrangement 1 is not offset by the reduction of £100,000 in the value of Arrangement 2"

are interesting and address an earlier question about separate calculation.

ffacoffipawb

jamesd wrote: »

Thanks, nice to know that in theory combining flexi-access is allowed (and capped can be switched to it) but the caveats:

"Verbally, HMRC have admitted to me that because of the requirement to be able to undertake the BCE 5A at age 75 (or the earlier BCE 4 if an annuity is secured from the drawdown funds) as if the two or more drawdown arrangements were still held separately, merging arrangements is likely to cause significant administration issues."

and

"To be clear, the £100,000 increase in the value of Arrangement 1 is not offset by the reduction of £100,000 in the value of Arrangement 2"

are interesting and address an earlier question about separate calculation.

Bit nasty. Hopefully one can manage which drawdown pot one draws down from. Probably not easy, or even possible, if merged at one provider with only a single account like Youinvest.