SIPP Drawdown HL

badger09

I’ve decided to move the whole of my small SIPP (below £100k) with HL into Drawdown & take the 25% tax free lump sum. I don’t need income so may or may not take ad hoc taxable sums afterwards. 

If I’m reading their guidance correctly, once in Drawdown account, I have to telephone to sell investments to realise cash for withdrawal. So I should sell at least enough for the lump sum before applying for drawdown. Can someone please confirm? 

(I’m tackling a lot of life stuff at the moment & feeling a little overwhelmed) 

ali_bear

I am in this process with them. You do have to sell units to put your 25% TFLS into cash before applying for it. And the same when making drawdown requests - or at least you have to have that cash ready when the drawdown is going to take place, the end of the month. But you can do that all online. 

Fermion

I'm with HL - process for any sort of withdrawal (ad-hoc or regular) is straightforward. You can request this either by a secure message or by clicking "Request Withdrawal" on the Income Drawdown screen and completing the details. You can even request this on the HL App.

You do need to be aware of the timescales though - payments are made on the 28th of the month and the payment requests must be made by the 17th of the month

Albermarle

If I’m reading their guidance correctly, once in Drawdown account, I have to telephone to sell investments to realise cash for withdrawal

I think you must have misread something.

badger09

Thank you all. Really useful comments as usual. 

In view of timescale I will press the button this afternoon & report back. 

jaybeetoo

I was in drawdown with HL.  I carried on buying and selling investments online.  You don’t have to phone them.

badger09

Update 
And another question. 

15/1/26 I sold enough to cover my 25% tax free lump sum & applied to move all my SIPP into Drawdown account. 

This morning my SIPP holds only the tax free amount & the balance is still invested in new SIPP Income Drawdown account. This is quicker than I expected. 

Now that the accounts have been split, does anyone how long it will take for HL to close my SIPP & pay out the lump sum? Is that the part of the process which takes longest as they say they aim to process requests within 15 working days. 

Thanks

m_c_s

badger09 said:

Update 
And another question. 

15/1/26 I sold enough to cover my 25% tax free lump sum & applied to move all my SIPP into Drawdown account. 

This morning my SIPP holds only the tax free amount & the balance is still invested in new SIPP Income Drawdown account. This is quicker than I expected. 

Now that the accounts have been split, does anyone how long it will take for HL to close my SIPP & pay out the lump sum? Is that the part of the process which takes longest as they say they aim to process requests within 15 working days. 

Thanks

For me it normally takes a day or two for the TFLS to appear in my bank account once the other money is in the drawdown account.

badger09

m_c_s said:

badger09 said:

Update 
And another question. 

15/1/26 I sold enough to cover my 25% tax free lump sum & applied to move all my SIPP into Drawdown account. 

This morning my SIPP holds only the tax free amount & the balance is still invested in new SIPP Income Drawdown account. This is quicker than I expected. 

Now that the accounts have been split, does anyone how long it will take for HL to close my SIPP & pay out the lump sum? Is that the part of the process which takes longest as they say they aim to process requests within 15 working days. 

Thanks

For me it normally takes a day or two for the TFLS to appear in my bank account once the other money is in the drawdown account.

Thanks
Not very long after I posted, I had secure message from HL. ‘Tax free payment will be sent to your account shortly’. 

jaybeetoo

HL didn’t close my SIPP account.  They left it open with nothing in it.

Albermarle

jaybeetoo said:

HL didn’t close my SIPP account.  They left it open with nothing in it.

Fidelity did the same with me and a few weeks later, £4 appeared in it . Presume some delayed dividend adjustment or similar.