Taking further PCLS from a SIPP

Shadyocuk

https://forums.moneysavingexpert.com/discussion/comment/82126100#Comment_82126100

I am sure that I read it somewhere , but cant find it now hense the ?

RogerPensionGuy

https://forums.moneysavingexpert.com/discussion/comment/82126642#Comment_82126642

Just for being crystal.

I took maximum TFLS out of a DB scheme when I activated it a few years ago.

Then I got an annuity a few months back using funds in a DC SIPP pot and got the platform to take out more TFLS to the maximum 268K.

The platform said they would move all remaining left over funds in the DC SIPP pot in to a crystallised column or section.

I said no thanks, leave left over funds in the old/current uncrystallised column just in case the LSA LTA every gets increased(I guess it won't)

The platform did agree, yes indeed if the LSA LTA did go up leaving left over funds in the uncrystallised wrapper was a reasonable choice.

I will keep my fingers and toes crossed at every budget, however if annuity rates creep up a bit more it make me completely empty my DC SIPP.

If I do a drawdown, I would just move funds slowly as I needed in to a crystallised wrapper I think the platform mentioned.

Cheers Roger.

Triumph13

https://forums.moneysavingexpert.com/discussion/comment/82127134#Comment_82127134

Even if the limit did increase, you would be unlikely to benefit. Thay have traditionally tracked such things in terms of the percentage of allowance already used. Not the amount.

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82126116#Comment_82126116

HL have a specific form for small pots, I guess other providers who offer it do too. It'll be obvious anyway as they won't ask for LSA/LTA used as they're not relevant to taking a small pot, they are if you take a UFPLS or PCLS.

Can't see much benefit in waiting years, the small pots loophole could well be closed plus it's more admin and faffing if you have to do it 3 times. You can always put it into an ISA if you have spare allowance and it can grow there tax free.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82127200#Comment_82127200

I wonder if this will apply to the LSA. The LTA was from the start a moveable figure which is why they usually expressed what you had used as a percentage of the LTA rather than a fixed amount. The LSA doesn't look like it is going to change and when you get told how much of the LSA you have used the pension providers specify an amount in pounds sterling not a percentage.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82127374#Comment_82127374

Thanks for that. I think it is useful for the OP (and others) to know there is a special form for small pots (at HL anyway) and that if the provider starts asking you how much LSA you have used then that is a sign you may be going down the wrong track.

As to whether the small pots rule will be abolished I doubt it but there is this push to consolidate little pensions people may have lying around from old jobs and perhaps the Govt might think that push will deal with the problem the small pots rule is meant to address. Or maybe they will just decide people shouldn't be able to avoid the LSA or MPAA by using it.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82126116#Comment_82126116

If your uncrystallised pot is in your SIPP along with the crystallised pot you need to split the uncrystallised pot off into a separate pension. HL allow you to hive off £10k from a larger pension so you can use the small pots rule - others may not be so helpful.

AFAIK, of the retail providers only HL will do this, but some platforms used by advisors will also do it.

If your provider is one of those which do a notional split between crystallised and uncrystallised then I am not sure if you could hive off just the uncrystallised pot. Maybe you would need to transfer the whole lot to somewhere like HL which has a hard split between crystallised and uncrystallised.

Fidelity do a hard split between crystallised and uncrystallised, but they will not split off small pots from a larger one. Possibly because a lot of admin for little reward, or maybe they feel 'the trick' is sailing a bit close to the wind, as it is obviously not in line with the original reasons behind the small pots rule.

Thanks for that. I think it is useful for the OP (and others) to know there is a special form for small pots (at HL anyway)

Same at AJ Bell - you need to message them specifically to request a withdrawal under the Small Pots rule and they send you something to fill in. There have been threads on here where people just requested a normal withdrawal of a sub £10K pot, and these triggered the MPAA…..