Applying for pension - quick question

GenX0212

Mrs GenX is about to apply for her pension(s) and she will be taking a combination of DB plan and SIPP drawdown together. She will have about £5k from DB and planning on taking about £6k from drawdown.
When applying the forms ask whether you are receiving any other pension income and to provide details (presumably to try and help get the right tax code) but she hasn't actually started receiving either as yet. As her total income will be below basic rate tax threshold then is it easier just to answer 'no' when filling the forms?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6662888/applying-for-pension-quick-question

I very much doubt that question is connected to her tax code(s).

Pension payers have to use specific codes for the first payment and that usually means either the emergency code (1257L) or BR is used, irrespective of whether it's the first or tenth pension being paid.

GenX0212

https://forums.moneysavingexpert.com/discussion/comment/81951695#Comment_81951695

What's the reason they ask then, maybe LSA related?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81951726#Comment_81951726

Probably LTA related. Although LTA was abolished (2 years ago today) if someone took some of their LTA prior to this date then there are transitional arrangements to take account of.

Silvertabby

The LTA figure still applies to the total tax free cash that may be taken from all pensions.

DRS1

Is she taking all 25% TFLS from the SIPP at the start or is she spreading it across tax years? The SIPP provider will need to know how much TFLS she takes from the DB Scheme if not for the first SIPP TFLS she takes then for any later ones.

And if she is not taking the maximum TFLS from the DB Scheme then she should maybe think about the Transitional Tax Free LUMP Sum Certificate (although perhaps that is only an issue if she might hit the LSA).

Some forms I have seen ask about any pensions you are taking at the same time not just any pensions already taken.

katejo

https://forums.moneysavingexpert.com/discussion/6662888/applying-for-pension-quick-question

I am about to take my DB pension and have the same question to answer. I don't have any other pension scheme at all but, if I did, it would affect the amount I could take as a tax free lump sum from my current pension.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81952107#Comment_81952107

Taking the tax free lump sum from one pension, does not affect your ability to take a tax free lump from any other pensions. Except there is a maximum limit you can take tax free from all pensions of just over £268,000.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81952222#Comment_81952222

Yes that's what I meant. I won't be any where near the maximum anyway.

GenX0212

https://forums.moneysavingexpert.com/discussion/comment/81951865#Comment_81951865

No. Just a small monthly UFPLS sum.

GenX0212

@katejo "Yes that's what I meant. I won't be any where near the maximum anyway"

Same here.

So no-one seems to know why they need to ask the question?

I think we will just say no because technically that will be true at the point we apply.