First SIPP Drawdown
in Pensions, annuities & retirement planning
4 replies 250 views
I have been in receipt of a small DB pension since 2021 and want to start drawing down from my SIPP up to my personal tax allowance for 2023/24. Can someone please advise me how I can withdraw from my SIPP without HMRC taking off tax. I won't pay tax in 2023/24 as my DB plus SIPP withdrawal will take me up to my personal allowance. I have used this current year's tax allowance with payments from my DB plus another small DC pension. Should I take a tiny payment in April to get a tax code?
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Then you will have three pensions from HMRC's perspective.
Once the SIPP provider has reported the first payment and you can see this as a new source of income on your Personal Tax Account you can update each one to show how much you expect to be paid in (taxable) income in 2023:24.
That will prompt a tax code review and you will have tax codes,
The above assumes you have applied for Marriage Allowance and aren't either Scottish or Welsh resident for tax purposes.
But there's nothing you can do until the pension payer (or employer) has reported the first payment.