Best way to save tax on lump sump

Edwin_starr

Hi i have just over £38,000 in my Aviva pension which i would like to take about £ 20,000 out of it . I am 65  in March one year to go until state pension age.66  i currently have a small pension i draw on £6720 plus savings ,we are moving house and want to do different things to it  so is this the best way to do this 
 Take the Lump sum £9.500 and before  April  this year take £5,250  then next tax year take another £5,250 keeping me under the £12,500 threshold i know i will have to pay tax on the remaining £18,000 
Thank you for any help with this cheers

Albermarle

Sounds like a plan . You can actually take more than £5250 , as £12500 minus £6720 = £5780.
First though you need to check with Aviva if it is possible to do it that way with the pension you have .
Although technically/legally many things are possible with drawdown , not all pensions are that flexible, especially older ones .

Dazed_and_C0nfused

And the Personal Allowance is meant to be being increased to £12,570 from 6 April 2021.

https://www.icaew.com/insights/tax-news/2020/nov-2020/income-tax-personal-allowance-and-national-insurance-limits-for-202122

Edwin_starr

Thank you every little helps