Inter-SIPP partial transfers

retiringin26

I have a Halifax (Embark) SIPP which applies immediate tax relief to cash deposits.

I also have another SIPP that will take weeks to apply the tax relief for my final in-payments.

Neither SiPP is in drawdown.

Could I use a partial cash transfer from Halifax to the other pension to bypass the HMRC refund 'delays'? The non-Halifax plan will be drawn from within the next 10 weeks so cash-flow timing is important.

Secret2ndAccount

Are you planning to empty that SIPP, all in one go? If you pay money into the SIPP today, then draw it out tomorrow, you are still entitled to the tax relief which will eventually show up. I'm not aware of any particular delays to straightforward SIPP tax relief. The normal timeframe is 6-11 weeks from contribution. That's for HMRC to pay up. Your provider could add extra delays. Search your provider's website - they might offer a predicted timescale.

So unless you plan to empty that SIPP completely in the next 10 weeks, you should be okay.

Nothing to stop you initiating a partial transfer since you've never drawn any funds from the Halifax SIPP. If you're lucky, it could be completed in days; if you're less lucky it will take weeks. The only downside is that money will be in limbo during the transfer. So there will be a period when you can't withdraw it from either SIPP. Nor can you invest it, or change what it's invested in.

retiringin26

https://forums.moneysavingexpert.com/discussion/comment/81947890#Comment_81947890

Halifax SIPP will have 26-27 allowable, pensionable earnings added in June once I've retired, then left alone for 3-4 years besides using it as described above. Those 26-27 earnings would have gone into the other SIPP but for the tax relief delay.

Other SIPP: once all contributions from 26-27 have settled down I will take a 25% TFLS roughly in June 26 and then periodic drawdown over 3-4 years from it's sole STMM fund.

Secret2ndAccount

Then what's the rush regarding the tax-relief? It will get there eventually. It seems there should be enough in there to provide a lump sum, and a first drawdown payment, even if the relief top up hasn't yet arrived.

retiringin26

https://forums.moneysavingexpert.com/discussion/comment/81947906#Comment_81947906

I will require a specific TFLS amount in June and a final deposit via Halifax seems to ensure that.