Panic Mode

thebullsback

Basic rate Tax payer with £11400 income above personal allowance .
Yesterday I decided to Sell £24000 worth of shares in my AJ Bell Sipp .
I assume AJ will deduct 20% Tax off this sum before it appears in my Cash account .
Am I correct in thinking this or have I got it wrong?

El_Torro

You will probably pay more than 20% tax on this £24k. You will pay emergency tax. 

Any excess tax you pay can be recovered from HMRC. They should do it automatically, though if you contact them this should speed it up. 

Are you planning to make any more withdrawals this tax year? If not this should make things simpler. 

Are you aware of the MPAA rules? I don't know if you are currently paying into a pension but it's worth being aware of the rules if you are.

Dazed_and_C0nfused

thebullsback said:

Basic rate Tax payer with £11400 income above personal allowance .
Yesterday I decided to Sell £24000 worth of shares in my AJ Bell Sipp .
I assume AJ will deduct 20% Tax off this sum before it appears in my Cash account .
Am I correct in thinking this or have I got it wrong?

Do you mean cash account outside the SIPP or the cash element within your SIPP?

There would be no tax payable until it is taken out of the SIPP.

leosayer

When you sell shares in your SIPP, the sale proceeds are paid into the cash account in your SIPP. 

Have you actually withdrawn this cash from your SIPP? 

thebullsback

The money will go into my Sipp cash account before I withdraw.
If I'm on emergency code how long before Tax correct this as I'm wanting The cash quickly  for a car .
Thank you all

Dazed_and_C0nfused

thebullsback said:

The money will go into my Sipp cash account before I withdraw.
If I'm on emergency code how long before Tax correct this as I'm wanting The cash quickly  for a car .
Thank you all

There is no tax within the SIPP.

Are you taking £24,000 out of the SIPP?

If so is that,
£24k TFLS
£6K TFLS & £18k taxable pension income or £24k taxable pension income?

Vitor

Selling shares in your SIPP isn’t taxed, the tax only hits when you withdraw cash, and AJ Bell will run that through PAYE (not a flat 20%).”

thebullsback

I will withdraw the cash once AJ has sold them and they appear in my Sipp cash section.
I am selling £24 k worth of shares.

Dazed_and_C0nfused

thebullsback said:

I will withdraw the cash once AJ has sold them and they appear in my Sipp cash section.
I am selling £24 k worth of shares.

No one can tell you how much tax is likely to be deducted until you say the split between tax free and taxable elements.

thebullsback

I have withdrawn from the Sipp about 4 year ago and was Taxed on I guess emergency code but I was ok with the Tax sorting itself out back then .Its different now as I need the money .
From what I read I think once I withdraw the cash generated from my share sales AJ will deduct Tax which I fully expect I just dont know if it will be the 20% im expecting or more .
If its more and I contact Tax people are they pretty quick at refunding .
my total income is 23K so after personal allowance I pay basic on about 11k

Dazed_and_C0nfused

thebullsback said:

I have withdrawn from the Sipp about 4 year ago and was Taxed on I guess emergency code but I was ok with the Tax sorting itself out back then .Its different now as I need the money .
From what I read I think once I withdraw the cash generated from my share sales AJ will deduct Tax which I fully expect I just dont know if it will be the 20% im expecting or more .
If its more and I contact Tax people are they pretty quick at refunding .
my total income is 23K so after personal allowance I pay basic on about 11k

You still haven't said what the split is between tax free and taxable amounts.

So the tax could be anywhere from £0 to getting on for £10k.

Expect any tax refund to take several months.