Hargreaves Lansdown (Possibly others) UFPLS question

baz8755

I intend to start taking a UFPLS payment of £16750 once per tax year from my SIPP and leaving the rest invested as is.

However looking at the Hargreaves Lansdown UFPLS application it looks like it wants me to crystalise all my investments and re-invest. I would much rather just draw from the cash balance in my SIPP.

Also for tax and purposes to avoid transactions potentially being processed over year end what is the best time to apply.

tacpot12

If no-one else has a copy of the application form they completed to request an UFPLS withdrawal, I would suggest you call them, tell them what you want to do and ask them to explain how to fill the form in. Ask them to confirm their advice via email or secure message. 

There should be no need to crystalise any investments at all for UFPLS, and I would move to AJ Bell if HL insist on crystalisation (presumably they would want all the dealing fees associated with doing so), but I doubt they will. It will just be some bad wording of the form. (You might want to give HL feedback on this if it is badly worded).  

As to when to do it, I suggest you also ask them how long it takes to process the request, and then ask for it when you want the money. It doesn't change how much tax you will pay. You'll be taxed on a Month 1 basis. This explains how the tax due on the payment will be deducted: AJBIC_Taxation_of_flexible_pension_payments.pdf

dunstonh

However looking at the Hargreaves Lansdown UFPLS application it looks like it wants me to crystalise all my investments and re-invest. I would much rather just draw from the cash balance in my SIPP.

I don't know what their system is like but what you describe is the drawdown option.  You want the UFPLS option.

Jerben

baz8755 said:

I intend to start taking a UFPLS payment of £16750 once per tax year from my SIPP and leaving the rest invested as is.

However looking at the Hargreaves Lansdown UFPLS application it looks like it wants me to crystalise all my investments and re-invest. I would much rather just draw from the cash balance in my SIPP.

I’ve done exactly what you want to do, with HL, a number of times.
I think you must have misunderstood something?

https://www.hl.co.uk/help/adding-and-withdrawing-money/accessing-pension/ufpls

Or speak to them?

As for the best time to apply… it depends on what your concerns and objectives are?
In my experience it usually takes about 2-4 weeks.
Tax will likely be taken from it depending on your overall tax situation and the time of year you take it.

baz8755

Thanks everyone for your replies.

I spoke to HL today and I can do what I planned to do. When I mentioned the website confusion the advisor said that it was probably trying to collect information so they could help with investment planning.