Flexi Access Drawdown

Dear Sir/Madam,

Referring to my question, to be clear, what I meant was,

1. Is the process of a member moving his/her pension fund in stages into a drawdown plan & at the same time taking the tax-free portion of the transferred amount (i.e. 25% of total fund transferred out from his pension fund) considered as exercising UFPLS?
2. Will the fund transfer trigger income tax on funds injected into the drawdown plan before an income is withdrawn?

Thank you.

Thanking you in advance.

 

Hi

Not sure I really understand your question.

But when drawdown is taken, each such lump sum is known as an Uncrystallised Funds Pension Lump Sum (UFPLS) and up to 25% of each UFLPS will be paid tax-free and the remainder will be taxed as income.