How do I actually *use* a TTFAC?

Climberjohn

Well, I jumped through all the hoops...and am the proud owner of a Transitional Tax free amount certificate.

How do I use it?

I want to take just the tax free cash from a SIPP.  Do I simply transfer the amount out?  Do I need to tell anyone?  Or is there another exciting and pointless paperchase I need to go through?

Thanks!

dunstonh

Once you have the certificate, your platform should have updated your configuration to allow an adjusted amount of tax free cash to be taken.   If you go elsewhere then you need the certificate.

Albermarle

dunstonh said:

Once you have the certificate, your platform should have updated your configuration to allow an adjusted amount of tax free cash to be taken.   If you go elsewhere then you need the certificate.

I have one of these certificates from my SIPP provider ( I got it because previously I took a DB pension in full with no lump sum) .
So if I just ask my SIPP provider for say £50K tax free, they will then notify me I have only used £50K/£268K X 100 % of my Lump sum allowance ( so ignoring any LTA % from taking the DB pension). Is that presumably how it works ?
Then if I go to another provider to withdraw more tax free cash, I do not need the certificate anymore ?

Or is there another exciting and pointless paperchase I need to go through?

Not really pointless when it means you could potentially avoid paying many thousands of pounds in tax, by having the certificate.

dunstonh

I have one of these certificates from my SIPP provider ( I got it because previously I took a DB pension in full with no lump sum) .
So if I just ask my SIPP provider for say £50K tax free, they will then notify me I have only used £50K/£268K X 100 % of my Lump sum allowance ( so ignoring any LTA % from taking the DB pension). Is that presumably how it works ?

That is how I am seeing it on the provider I have done it for so far.  i.e. they record you how much you have taken based on the old LTA.   If you then apply for the certificate, they adjust that figure to reflect the monetary amounts you received.    So, as long as you stay with that provider, it will be nice and easy.

Then if I go to another provider to withdraw more tax free cash, I do not need the certificate anymore ?

Only the provider that produced the certificate will know.   You need to give the certificate to any other provider who could be affected.    i.e. you have multiple providers.   That could get messy and some tidying up (consolidation of providers) where possible could be beneficial.  Or getting the certificate to the other providers earlier rather than later.

in respect of transfers between providers, the lump sum used should be given to the new provider as part of the handover information.