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Old 15.05.2018, 16:06
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Taking UK Pension Pot as Lump Sum

Hi,

I set up various UK pensions over 24 years ago and I would like to now take these as a lump sum. I wish to do this 100% legally but obviously avoid having vultures picking at the pot along the way. Does anyone have some recent experience to share?

In order to release the funds the pension company required a "Safeguarded Certificate" signed by an Independent Financial Adviser. I've contacted a couple recently and they said that they would require 3% of the total pot. Daylight robbery!

I'm also guessing that I'll need a statement or certificate stating that I am taxed here in Switzerland and said statement should be sent to HMRC and the pension company in order to avoid any UK tax being applied? From what I've read of the double-taxation agreement, the transfer to CH should be tax free (UK) but subject to a one-off 15% payment (CH)??

I had a quick look at a transfer to a QROPS, there's an idependent Stiftung in Kanton Schwiez but this would tie up the money for a minimum of 5 years! This is not what I want.

Any genuine experiences or valid feedback would be greatly appreciated.

Thanks

Piv
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Old 15.05.2018, 16:57
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Re: Taking UK Pension Pot as Lump Sum

I am also very interested in this subject. I spoke to HMRC recently who, somewhat unbelievably, were unable to clarify the rules on taxation. From my understanding though, tax would be withheld in payout and then has to be reclaimed back from HMRC. When I first had a small pension paid from the UK, I had a great deal of trouble getting HMRC to refund my overpaid tax, so if the former is true this would be a concern.

Very interested to hear anyone's experience of this.
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Old 15.05.2018, 17:46
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Re: Taking UK Pension Pot as Lump Sum

There's a thread here with loads of info here. I did it last year, it was a little complicated but I certainly didn't have to use a financial advisor to cash it in. My pension was with Sun Life.
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Old 15.05.2018, 20:34
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Re: Taking UK Pension Pot as Lump Sum

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There's a thread here with loads of info here. I did it last year, it was a little complicated but I certainly didn't have to use a financial advisor to cash it in. My pension was with Sun Life.
Were you able to do this without paying a huge wedge of UK tax? Did you get the cash or just transfer it to a Swiss scheme? Thanks!
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Old 15.05.2018, 21:08
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Re: Taking UK Pension Pot as Lump Sum

I made my personal pension's into SIPPs & have been drawing down very aggressively. Take 25% tax free lump sum & It's possible to take the UK personal allowance subject to UK taxation i.e zero tax & have the rest subject to tax in your place of residence.
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Old 15.05.2018, 23:14
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Re: Taking UK Pension Pot as Lump Sum

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I made my personal pension's into SIPPs & have been drawing down very aggressively. Take 25% tax free lump sum & It's possible to take the UK personal allowance subject to UK taxation i.e zero tax & have the rest subject to tax in your place of residence.
I think that's the most efficient method available, atm - it changes so quickly. If you want some reliable advice around SIPPs and drawdowns etc, try either Which? or moneysavingexpert.
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Old 15.05.2018, 23:33
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Re: Taking UK Pension Pot as Lump Sum

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I think that's the most efficient method available, atm - it changes so quickly. If you want some reliable advice around SIPPs and drawdowns etc, try either Which? or moneysavingexpert.
My aim was to pay zero tax, by using personal allowances in 2 countries, had I not got married that would have worked
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Old 16.05.2018, 07:54
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Re: Taking UK Pension Pot as Lump Sum

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There's a thread here with loads of info here. I did it last year, it was a little complicated but I certainly didn't have to use a financial advisor to cash it in. My pension was with Sun Life.
Thank you. I have read through the previous thread. Did you get your overpaid emergency tax back from HMRC relatively painlessly? I also read that you opened a Post Finance sterling account. I had understood from a previous post that you had a sterling account in CH which I assume was with a bank. Was that account not good enough for the transaction for some reason, or was the PF account just a preference. Thanks in advance.
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Old 16.05.2018, 07:57
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Re: Taking UK Pension Pot as Lump Sum

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I made my personal pension's into SIPPs & have been drawing down very aggressively. Take 25% tax free lump sum & It's possible to take the UK personal allowance subject to UK taxation i.e zero tax & have the rest subject to tax in your place of residence.
Were you able to do this yourself or did you have to use a Financial Adviser? I understood that a requirement of the new arrangements was to have taken financial advice (I may be wrong on this) and we are having a great deal of difficulty in finding anyone to take us on. Thanks in advance.
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