We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
HL Sipp - Taking tax free lump sum.
Comments
-
One thought - if you plan to draw £12k pa out of the drawdown account perhaps you should do that as £1k per month. If you draw £12k all in one month you are probably going to see some tax deducted from it.
1 -
If you take the full £12570 in one month, you will pay around £4K in tax.
From another thread - details from @molerat
£4034.70. On a code of 1257LM1 £1048.26 is tax free, 20% on the next £3142, 40% on the next £7287 and 45% on the remainder.
There are ways of claiming it back, or if you just leave it you will automatically get a refund when your tax is calculated later in 2026.
1 -
A wee note to thank all folk here who gave very useful replies to my questions. I am a truly indebted.
How far that little candles throw their beams. So shines good deeds in a naughty world.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.8K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.3K Work, Benefits & Business
- 606K Mortgages, Homes & Bills
- 179K Life & Family
- 263.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards