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Taking UFPLS from SIPP
Comments
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Oh dear, looks like you will be getting a lot of extra tax taken off. There are links in the comments above to the gov.uk page that shows you how to claim it back. If you do nothing it seems that HMRC will refund what you are due back sometime in the summer.PaulJacksonUK said:Oh dear, I'm in the same boat. I am just about to make a UFPLS withdrawal of around £30K having only earned about £2.5K earlier this year (I retired in April). I never imagined they'd be so crazy as to tax it as if I've earned at this rate all year. I presume if I do a tax return on April 6th I will then get refunded.
As your planned UFPLS is well over the personal allowance you will of course be liable for a fair bit of tax on it anyway. Is there no way you could take half of UFPLS next tax year (i.e. in April)?0 -
I probably don't any more but I've done them for the past few years having previously received dividends. It is actually pretty simple to do if your situation is uncomplicated. I'll compare it with doing a P55 and do what is easiest.Dazed_and_C0nfused said:PaulJacksonUK said:Oh dear, I'm in the same boat. I am just about to make a UFPLS withdrawal of around £30K having only earned about £2.5K earlier this year (I retired in April). I never imagined they'd be so crazy as to tax it as if I've earned at this rate all year. I presume if I do a tax return on April 6th I will then get refunded.
Why do you need to complete a tax return 🤔0 -
I'm in the process of thinking of taking my first UFPLS (having already taken £2,500 flexi-access income from my SIPP mid April this tax year), and claiming back the tax paid as I had to retire early 18 months ago due to being a carer.I believe I understand, from the helpful comments in this thread, that I can claim tax back on the UFPLS amount (form P55) but how does that work with the 25% tax-free allowed, please?I estimate that interest savings by the end of the tax year will be circa £1,485 and I hope to take a £11,000 UFPLS next week.0
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I believe I understand, from the helpful comments in this thread, that I can claim tax back on the UFPLS amount (form P55) but how does that work with the 25% tax-free allowed, please?If you use Government gateway, its easier than selecting the correct P5x form and then posting it. Its also quicker.
Alternatively, run a final tax year UFPLS after March 7th.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2
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