Interactive Investor - Starting drawdown

ra2258

Hello, I would like to start withdrawing money from my SIPP which is on Interactive Investor. It is a good size pension...

As this is my first withdrawal - I know there will be excess tax taken unless I with draw a very small amount. I am happy to withdraw £100 or £1000 to avoid having to reclaim excess tax back..

For this tax year, what I want to do is very simple...

• I have cash savings at hand...
• I have no income coming in
• For my SIPP I want to do a withdrawal of £16,760 tax free (£4,190 tax-free cash and £12,570 income).

Where I am getting confused is how much to crystalize. I thought I would just be able to say give me £4,190 tax-free cash and £12,570 income but there are a ton of other options.

I do not think I want to crystalize the whole thing - I want it to stay invested and growing.

I do not want to make a mistake on this. I plan on doing the above for a few years as I have mentioned, I have cash on hand I can use right now.

The online form to start my withdrawal is really confusing me. Anyone else been through doing an initial withdrawal on Interactive Investor? Thanks!

NoMore

 You want a UFPLS withdrawal of £16760. This means you will only withdraw £16760 from your pension, 25% of which will be tax free. The rest of your pension will remain uncrystallised.

Taking an UFPLS lump sum payment - ii

Dazed_and_C0nfused

And you don't have to claim any tax back.

HMRC will automatically refund any excess tax deducted when they do their annual review in the summer after the tax year ends.

You might prefer to make an earlier claim but it isn't necessary.

squirrelpie

Or you can withdraw a small UFPLS payment first and follow with another to make up the total once HMRC have issued a tax code to ii.

LHW99

On the whole the process with II is fairly straightforward. My OH did it earlier this year, and it was all online.

They suggest you should talk to Pensionwise, and that is free, but you don't have to do that in order to make your withdrawal.

You should already have a current account listed with them (usually sone when the account is first opened), and the money goes through and arrives in your C/A quite quickly.

ra2258

I will do the UFPLS . Likely will do a small one - to get a tax code. Then do the rest after that. Many thanks all!

dunstonh

ra2258 said:

I will do the UFPLS . Likely will do a small one - to get a tax code. Then do the rest after that. Many thanks all!

You will still get excess tax on the second one unless you do it in month 12 of the payroll cycle.