Tax Free Cash
zorsey
Posts: 2 Newbie
I know that I am allowed 25% tax free cash from my pensions but currently they are held in 2 different places. I have a RL personal pension (150K)with a 9% guaranteed annuity and a SIPP (290K) I plan on buying an annuity with the 150K but and I presume that I therefore lose the £37K tax free cash and I cannot carry this across to my other pension pot and look at my pension holdings in total? Ir tax free cash on £440K?? So £110K instead of £73k
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Each pension is assessed individually, so sadly no, you can't 'carry across' the tax free 25% from one to another.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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Thought that would be the case !!!55357;!!!56900;thks for replying0
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Why would you lose the £37k?0
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Each pension is assessed individually, so sadly no, you can't 'carry across' the tax free 25% from one to another.
<pedentic mode on>
Actually, the rules do allow it.
<pedantic mode off>
However, you don't see it supported anywhere apart from the odd AVC linked to a main scheme.I presume that I therefore lose the £37K tax free cashI am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
<pedentic mode on>
Actually, the rules do allow it.
<pedantic mode off>
However, you don't see it supported anywhere apart from the odd AVC linked to a main scheme.
Thank you - didn't know that. Please could you say some more, in particular what 'supported' means?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Thank you - didn't know that. Please could you say some more, in particular what 'supported' means?
Basically, the rules do allow for the combining of plans, on paper, and the TFC being paid from just one of them. However, no provider supports that functionality. I am guessing a mixture of administration costs and implementation costs vs the very small number of people that would use it has put them off. So, it isnt the pension rules that are preventing this. It is the commercial reality.
Whereas linking of AVCs with the main scheme is actually quite easy to do as the administration is normally all with the same administrator. So, you do see it with some workplace schemes.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Paul_Herring wrote: »They mean the ability to withdraw it tax free.
The OP doesn't mention the GAR excludes the ability to take 25% tax free but I'll assume now they can't as otherwise there'd be no need to ask their question.0 -
What would you do witht he 37K if you can get it as a TFLS before the gAR being applied to the rest?
If you are thinking keping it in cash, you'd probably be better off using it to buy the GAR0 -
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