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rakhi.v
rakhi.v, Financial Advisor
Category: Tax
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I have a drawdown pension with SJP - not an annuity. I have

Customer Question

I have a drawdown pension with SJP - not an annuity. I have now taken my 25% lump sum. The balance, which is constantly reinvested under the drawdown arrangement, is approximately £350K from which I draw my monthly pension. Considering the changes in pensions announced in the recent budget am I now entitled to take my full pension fund in April 2015? (Although I realise of course there will be a hefty tax liability).
I look forward to hearing from you.

Many thanks

Mike Upton - Bedford
Submitted: 3 years ago.
Category: Tax
Expert:  rakhi.v replied 3 years ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Yes absolutley. You have understood it correct. As per the new amendments, you would be able to withdraw full pension in 2015. However, also as you have very correctly understood, there will be a tax liability attached to it, but you will be certainly able to withdraw in full.

 

The amount you withdraw would be treated as income for that tax year, pushing the individual into the higher-rate tax band for the year.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards

rakhi.v and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

To: Rakhi V


 


Thank you very much for the information regarding my drawdown pension.


 


Regards


 


Mike Upton - Bedford UK.

Expert:  rakhi.v replied 3 years ago.
Dear Mike,

I am so glad it helped. Please feel free to revert back any moment if you need further assistance.

I was total pleasure assisting you. Wishing you best of the times....

Warm Regards