• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Flexi Access Drawdown

E

Edward chong

Member
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 Will the fund transfer trigger income tax on funds injected into the drawdown plan before an income is withdrawn?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.
 
Last edited by a moderator:
Hi

Not sure I really understand your question. :confused:

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.
 
Back
Top