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Posted Thu, 07 Nov 2024 21:55:27 GMT by Vasant Marathe
Hi, I have couple of questions for pension withdrawal and would be grateful if you could answer them. Q1: Is it possible to withdraw 25% tax free pension over several years in multiple drawdown ? Example : A 55 year old individual ( Say Donald Trump ) has £100K pension in SIPP self invested Stocks. Mr Trump wants to withdraw 25% tax free pension in five different drawdown. At age 55 he withdraws 5%=5k and then every year 5% for next 4 years , will this be tax free . Q2: if above is possible then will the percentage amount of withdrawal will be according to pension portfolio value at the time of withdrawal? Example based on above : Mr Trump’s SIPP portfolio at the time of first withdrawal is 100K so he gets 5% = 5K Next year his portfolio becomes 110k, will his next 5% be counted 5.5k ? Q3: How many multiple drawdown possible of 25% tax free pension. E.g can this be divided in 10 with one drawdown every year. Much appreciate the answers. Kind regards, Vasant
Posted Tue, 12 Nov 2024 12:40:42 GMT by HMRC Admin 34 Response
Hi,
Please refer to guidance at:
PTM063210 - Member benefits: lump sums: Pension commencement lump sum (PCLS): payments
Thank you

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