Beneficiary flexi access drawdown11/25/2023 ![]() So if the member has a pension pot of £40,000, they could designate £30,000 as available for drawdown and the remaining £10,000 (which is one third of £30,000) can be taken as a tax-free pension commencement lump sum. When the member designates the new funds as available for flexi-access drawdown, they may choose to receive a tax-free pension commencement lump sum (see PTM063200 for more detail) of an amount equal to one third of the value of the funds that were put into the flexi-access drawdown fund. The sums or assets designated for flexi-access drawdown are called ‘newly-designated funds’. Where the member is making a designation on or after 6 April 2015 and did not have an existing drawdown pension fund on 5 April 2015, they must designate the sums and assets as available for the payment of drawdown pension in a new drawdown fund, known as a flexi-access drawdown fund. Paragraphs 7, 8 and 8A Schedule 28 Finance Act 2004Ī member wishing to take their pension benefits as drawdown pension must designate uncrystallised sums and assets in a money purchase arrangement as being available for drawdown pension. Taxation of a flexi-access drawdown pension Establishing a flexi-access drawdown fund Establishing a flexi-access drawdown fund
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