ii SIPP - taking first Tax Free Lump Sum

sausage_time

Planning on taking a PCLS (pension commencement lump sum) from my SIPP. What is not clear to me is if I need to sell some of one or more of my investments first in order to have cash available for the withdrawal.  I walked through the process expecting to be asked what should be sold to release the lump sum cash, but I reached the final commit button without being asked.

I do understand that the other 75% will move into my crystalised pot - but I want to leave that with the same investment.

What I don't want is for my various investment to be "top-sliced" to release the cash.

NoMore

You need to have available cash, so you need to sell.

It tells you on the form you fill in to withdraw:

sausage_time

I did see that comment, but somehow expected to be asked from where later in the process.  It does make sense, thanks!!

LHW99

Make sure the 25% is in cash (dividends and / or by sales). The remainer of the investments (the 75%) will remain as they are, although I seem to remember that you were offered other choices when my OH did this earlier in 2025.

sausage_time

Yes, I did see some options (Pathway, something else).  But I want to stick with what I have so did not drill down.  Thanks for the feedback, very useful.

sausage_time

Update - five working days from initiating sell order to money arriving in current account.  Nice.

nb_bob

https://forums.moneysavingexpert.com/discussion/comment/81823882#Comment_81823882

Thank you for that. That line about having 'sufficient cash' isn't actually on their 'Step-by-step' guide on their website. I've attached a screenshot of it. It's quite an important aspect of getting the 25% tax free PCLS but, as far as I can tell, it doesn't feature anywhere on ii's website apart from when you start filling in the form to start the PCLS process. I'm happy to be proved wrong but I couldn't find anything!

sausage_time

https://forums.moneysavingexpert.com/discussion/comment/81856582#Comment_81856582

I agree with your assessment. Hence my confusion and this thread. They should probably add that detail it to the guide

nb_bob

https://forums.moneysavingexpert.com/discussion/comment/81856597#Comment_81856597

If you don't mind I'm going to pick your brains as you've gone through the process. So just to clarify in my mind, if I wanted, for example, £1,000 tax free PCLS I would sell £1,000 worth of assets to convert to 'cash' then go through the withdrawal process to move £4,000 from the uncrystallised pot to the crystallised pot to claim the 25% tax-free cash.

Thanks in advance.

sausage_time

https://forums.moneysavingexpert.com/discussion/comment/81856836#Comment_81856836

Yes, exactly right. You need to wait for the sale to clear first so the £1,000 cash is available. After withdrawal you have £1,000 cash on your hand and £3,000 remaining invested as part of your crystallised pot. Takes a while to work though the form (20-30mins).