Clerical Medical pension to use personal allowance

SaintAlf

My partner has a Clerical Medical Individual Pension Plan worth £22k, invested in the "Balanced Pen" fund.  Next tax year she can get her state pension which, combined with her current DB pension, will take her income above the personal allowance.  This tax year she has £6k of unused personal allowance.  We are considering accessing the CM pension this year to use her personal allowance.  She does not want to cash in the full amount.  We are looking at "partial encashment" which would include a tax free 25% although ideally she wants to leave the tax free cash to use from next year onwards.  Is partial encashment the best way to use her personal allowance, or are there other schemes she could transfer to that would preserve the tax free cash for later?  If so could it be done in time to use this years personal allowance?  Thanks.

Dazed_and_C0nfused

SaintAlf said:

My partner has a Clerical Medical Individual Pension Plan worth £22k, invested in the "Balanced Pen" fund.  Next tax year she can get her state pension which, combined with her current DB pension, will take her income above the personal allowance.  This tax year she has £6k of unused personal allowance.  We are considering accessing the CM pension this year to use her personal allowance.  She does not want to cash in the full amount.  We are looking at "partial encashment" which would include a tax free 25% although ideally she wants to leave the tax free cash to use from next year onwards.  Is partial encashment the best way to use her personal allowance, or are there other schemes she could transfer to that would preserve the tax free cash for later?  If so could it be done in time to use this years personal allowance?  Thanks.

She cannot take taxable pension without taking the tax free element 

But she can take tax free cash and no taxable amount 

SVaz

Just stick the tax free cash in an ISA , it’s still in a tax wrapper and she can use it when she wants.  Take out £8000, stick £2k away.   It’s that easy. 

dunstonh

 We are looking at "partial encashment" which would include a tax free 25% although ideally she wants to leave the tax free cash to use from next year onwards. 

The transaction is called UFPLS.   And you cannot leave the tax free cash behind.  However, you can put the tax free cash in an S&S ISA to replicate the pension.

SaintAlf

Thanks all, very helpful