Prufund Drawdown - Tax Free Cash

John_30033

Hi,
Hopefully this is a simple question;  Do I have to take all 25% of my tax-free cash from my pension before I start drawing down taxable income?
My thinking is that come the time I should be taking a taxable amount that doesn't take me over my tax-free allowance for the tax year, and supplement that with tax-free cash until the tax-free cash 25% is all used up.
However, I have no idea if such a combination is possible.

Thanks a lot in advance for any assistance.
J.

OldMusicGuy

It depends on the scheme. Some allow what you describe (UFPLS), some don't. 

John_30033

Thanks for replying. Cheers.

dunstonh

Do I have to take all 25% of my tax-free cash from my pension before I start drawing down taxable income?

No.   You can crystallise in phases.

John_30033

dunstonh said:

Do I have to take all 25% of my tax-free cash from my pension before I start drawing down taxable income?

No.   You can crystallise in phases.

That's brilliant.  Thanks a lot for that.

Albermarle

If your read through the forum , you would see that it is very common for people to take the maximum tax free possible each tax year of £16760  = £12570 taxable ( not taxed as it is below your personal allowance) and £4190 Tax Free.

This assumes
1)that your pension allows this ( some old ones may not ) 
2) you have no other taxable income nb. state pension is taxable 
3) You are not planning on adding more than £4K pa to a pension in future .