Drawdown

john-306

My wife retired last year, she applied to drawdown her sipp approx 6k at the start of March 2021 to get up to her tax free limit.
 A few phone calls to LV and was promised it would be in her account either 1st or 2nd April. Needless to say it wasn't and due to Easter we couldn't contact them.
They only have a basic website but we could see in there they have transferred money into a holding account dated 4th April. 
Questions...
Does she get this money for the 20/21 tax year, even though she hasn't actually received it yet?
Whats the reason for a holding account?
Thank you.

Dazed_and_C0nfused

She can check her Personal Tax Account on gov.uk to see if LV have reported the payment to HMRC.

john-306

Thanks. Would it be registered already?
I'll get her to look at it.
I know she can ring LV tomorrow but it would be nice to have a heads up.

john-306

She's been on her personal tax account but there's no sign of anything from LV.
Not good if they've messed it up.

Thrugelmir

Friday 2nd was Good Friday a bank holiday - non banking day. 

john-306

Thrugelmir said:

Friday 2nd was Good Friday a bank holiday - non banking day. 

I agree, but LV were the ones who said it would go into her account either Thu 1st or Fri 2nd.
Why has it even ended up in the holding account?
Suppose we'll find out tomorrow.

dunstonh

I agree, but LV were the ones who said it would go into her account either Thu 1st or Fri 2nd.

Maybe the person didnt realise that the 2nd was a bank holiday.

Why has it even ended up in the holding account?

Possibly to ensure that the transaction took place in the current tax year rather than the new one?

Or maybe they have to move it from the crystallised funds to the holding account before distributing it.

john-306

Oh dear a complete mess up by LV, they agreed the instruction by my wife last month was correct and should have been paid 20/21 tax year, but it wasn't followed through, so hadn't been.
They have escalated it, and someone will contact her within the next 3 days.

Ianthegolfer

I have previously drawn down some of my pension and been taxed on it.
This year I am going to draw down toy tax allowance, and the rest of my income will come from an isa.

How can I ensure that I will not be taxed on this.
Previously it was taxed before I got my hands on it.

Ian

Dazed_and_C0nfused

Are you taking money from the same pension that you have already accessed or a new one?

john-306

Wife has had an email reply, admitting to the error blaming "the system", but stating there's nothing they can do now as it's the new tax year and HMRC won't allow it.
Now looking at financial ombudsman complaint.