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  • FIRST POST
    • Tight Fart
    • By Tight Fart 1st Dec 17, 3:23 PM
    • 18Posts
    • 0Thanks
    Tight Fart
    Tax free pension allowance?
    • #1
    • 1st Dec 17, 3:23 PM
    Tax free pension allowance? 1st Dec 17 at 3:23 PM
    When starting a drawdown account & transferring funds from your pension is it
    (And we'll call the pot 100k)
    A, you can take up to 25% tax free then, or
    B, the 25% can be taken any time. But only one withdrawal.
    C, you have 25k tax free that could be withdrawn in dribs & drabs
    D, should the pot grow to 200k and you've not taken any cash tax free you could then take 50k?
Page 1
    • dunstonh
    • By dunstonh 1st Dec 17, 4:11 PM
    • 92,547 Posts
    • 59,834 Thanks
    dunstonh
    • #2
    • 1st Dec 17, 4:11 PM
    • #2
    • 1st Dec 17, 4:11 PM
    A & C are correct.
    D is also correct but the pension wouldnt be in drawdown prior to that. So, using the typical multi-choice approach or which answer is most correct (and lets not forget the usual double negatives multi-choice questions/answers like to use!), then A&C are the most correct.

    B could have been correct had you not added "But only one withdrawal."
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • xylophone
    • By xylophone 1st Dec 17, 4:18 PM
    • 25,370 Posts
    • 14,966 Thanks
    xylophone
    • #3
    • 1st Dec 17, 4:18 PM
    • #3
    • 1st Dec 17, 4:18 PM
    http://www.hl.co.uk/pensions/drawdown/what-are-the-alternatives
    • Jerben
    • By Jerben 1st Dec 17, 4:33 PM
    • 62 Posts
    • 27 Thanks
    Jerben
    • #4
    • 1st Dec 17, 4:33 PM
    • #4
    • 1st Dec 17, 4:33 PM
    OP
    It then depends on if your provider will allow some or all of the allowable options! Then what their charges will be for those!
    It might cause you to think again on what you want to do.
    • ex-pat scot
    • By ex-pat scot 1st Dec 17, 5:00 PM
    • 249 Posts
    • 298 Thanks
    ex-pat scot
    • #5
    • 1st Dec 17, 5:00 PM
    • #5
    • 1st Dec 17, 5:00 PM
    OP
    It then depends on if your provider will allow some or all of the allowable options! Then what their charges will be for those!
    It might cause you to think again on what you want to do.
    Originally posted by Jerben
    If they don't, then change.
    It appears rare that the best provider in accumulation is also the most appropriate in decumulation.
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