SIPP drawdown

sevenhills

I have shares to the value of £13k in my SIPP. When the time is right in 4/6 months could I sell some shares and then withdraw £3k to help pay my monthly outgoings and mortgage and then start another SIPP before the next tax year and contribute a few thousand?

Would the shares left in the SIPP just remain as shares within the SIPP until I needed the money?

I have read this "Example 1 - You take tax-free cash of £5,000 from a pension and reinvest all of this in another pension plan. As long as you received no other tax-free cash in the previous 12 months, it would not be caught under the recycling rules, even if this was pre-planned, as the tax-free cash was below £7,500"

Which makes me think that I can start a new SIPP every other year or so, I am thinking about trying different platforms, I am currently with HL.

I am 60 and working, earning £15K+ per year.

jamesd

You can also add more money to the pension you've just taken money from.If you do it with HL you'll have an uncrystallised pot that new money is added to and a crystallised pot from which 25% has been taken and from which withdrawals are taxable as ordinary income.

You must restrict yourself to only the tax free 25% or use the small pots rule, otherwise your annual pension contribution amount will be capped at 4k a year.

The shares will remain in the SIPP and just be moved over to the crystallised part.

ColdIron

You don't need to open a new SIPP with a different provider, just continue to use HL

Your best route is probably to move it into drawdown (without 'drawing down' any taxable income) and take the 25% PCLS as describe above. Be very careful not to take any taxable income unless you want to trigger the MPAA