Avoiding MPPA

puddleormuddle

Hi

I wonder if I could get a bit of advice to I hope confirm my plans are possible.

I am 58 and have one DB pension in payment from the Teachers Pension Scheme. I am still working and paying into the LGPS Scheme. I am also paying £650 a month into Prudential AVCs. 

I have some previous Prudential AVCs from the Teachers scheme which, as they not as flexible as the LGPS ones, I have just transferred from Prudential to a Hargreaves Lansdown SIPP. The transfer value was £20075. 

Am I right in thinking that if I open another  SIPP and transfer in some of the money that is now with Hargreaves Lansdown, ensuring that each is less than 10,000 (this will be the case after charges) I would, as they are small pots, then be able to draw down 25% tax free cash from each and potentially take the rest, paying tax as required, when I want to without trigerring MPPA? 

Thanks for your help

(PS for those that always like to ask I will have a full state pension - I again am lucky because although I was contracted out I have enough years available to me to get a full state pension at my normal retirement date).

garmeg

Whatever you have in your Hargreaves Lansdown SIPP, you can ask them to create a £10,000 small pot from this SIPP which you can then take under small pot rules.

No need to move elsewhere, Hargreaves Lansdown is all you need for this.

i have done this once already, so i can do it two more times when i wish.

Looks like @ffacoffipawb has done this too from the pic he / she posted yesterday.

EDIT: As well as avoiding MPAA the small pot method uses no LTA either.

xylophone

Why would you need to open another SIPP? HL could arrange the division into "small pots".

garmeg

xylophone said:

Why would you need to open another SIPP? HL could arrange the division into "small pots".

Which is what I said. 😀

Albermarle

Is it only HL who will do this ? Not sure if the other SIPP providers will?

garmeg

Albermarle said:

Is it only HL who will do this ? Not sure if the other SIPP providers will?

Hargreaves Lansdown definitely do.

A J Bell Youinvest turned me down when I asked them.

Not tried any others as I only have SIPPs with these two.

xylophone

Which is what I said.

Sorry - cross posted.

garmeg

xylophone said:

Which is what I said.

Sorry - cross posted.

No problem. More likely to believe this if two of us confirm this. 😀

puddleormuddle

Thank you - I didn't realise HL would do this, I assumed I had to open an additional SIPP