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SIPP LTA Question

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Financial_Headache Posts: 4 Newbie

6 August 2018 at 10:03PM in Pensions, annuities & retirement planning

I may be dim but have been trying to understand how BCEs and LTA are applied in practice to a SIPP invested in many individual investment trusts and funds. If by good fortune the SIPP considerably exceeds the LTA and the plan is to crystalise the full LTA amount into drawdown in order to obtain the maximum tax free lump sum, is it necessary to nominate the specific trusts and funds that go to make up this sum? If not, is it just the total value of the SIPP that is used for any future BCEs such as on death or at age 75 or that all trusts and funds are in some way pro rata’d into crystallised and uncrystallised pots?

Grateful if anyone can help

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SIPP LTA Question

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