TFC and 25% sanity check crystallised

MetaPhysical

Keeping the numbers simple.

Say I have an uncrystallised 400k pot and I want 100k in TFC - I've never taken TFC before or withdrawn from the SIPP.  This would mean I would have to put 300k into my crystallised pot with no uncrystallised left in order to get the 100k in TFC.

If the uncrystallised 300k remains invested and grows I can take more TFC (25% of it) as further TFC because I have not used up my 268k allowance of TFC?  Or to put it another way let's say the 300k grows to 400k.  Does that 100k growth also remain crystallised or does that get uncrystallised so that I can take another 25k from it in TFC??

leosayer

No.

Growth on the crystallised pot is part the crystallised pot.

Dazed_and_C0nfused

MetaPhysical said:

Keeping the numbers simple.

Say I have an uncrystallised 400k pot and I want 100k in TFC - I've never taken TFC before or withdrawn from the SIPP.  This would mean I would have to put 300k into my crystallised pot with no uncrystallised left in order to get the 100k in TFC.

If the uncrystallised 300k remains invested and grows I can take more TFC (25% of it) as further TFC because I have not used up my 268k allowance of TFC?  Or to put it another way let's say the 300k grows to 400k.  Does that 100k growth also remain crystallised or does that get uncrystallised so that I can take another 25k from it in TFC??

No, the remaining £300k is all taxable income when you take it out of the pension and any growth on that £300k is also taxable income when you take it out.

You exhausted your tax free cash form that pension by taking the full 25% up front.

You would have to add new money to get any additional tax free cash from that one.

poseidon1

The only way you could 'grow' your TFC is via taking periodic UFPLSs, over the years thereby drip feeding access to smaller 25% TFCs amounts whilst your uncrystallised pension pot continues to grow.

DRS1

MetaPhysical said:

Keeping the numbers simple.

Say I have an uncrystallised 400k pot and I want 100k in TFC - I've never taken TFC before or withdrawn from the SIPP.  This would mean I would have to put 300k into my crystallised pot with no uncrystallised left in order to get the 100k in TFC.

If the uncrystallised 300k remains invested and grows I can take more TFC (25% of it) as further TFC because I have not used up my 268k allowance of TFC?  Or to put it another way let's say the 300k grows to 400k.  Does that 100k growth also remain crystallised or does that get uncrystallised so that I can take another 25k from it in TFC??

The bit in bold may be the issue - the 300k is not uncrystallised it is crystallised.