What is Uncrystallised Funds Pension Lump Sum (UFPLS) – withdrawal of entire fund
You can withdraw a single lump sum from your pension without the need to move the funds into a drawdown plan first. 25% of the fund may be taken tax free with the balance taxed at your marginal rate(s) of income tax.
In order to take advantage of UFPLS there are a number of conditions that need to be met:
- You must be aged 55 or over or, if younger, meet ill-health conditions.
- The payment must be payable from your uncrystallised rights held in a money purchase pension.
- If you are aged under 75, you must have more lifetime allowance remaining than the lump sum required.
- If aged over 75, you must have some lifetime allowance remaining.
- If you have primary or enhanced protection with protected tax free cash or a lifetime allowance enhancement factor but the lump sum allowance is less than 25% you can’t take your benefits as a UFPLS.
- Where scheme specific lump sum protection exists, the right to the higher TFC would have to be given up in order to use UFPLS.