Tax Free Cash (UFPLS) Full Withdrawal

What is an entire fund withdrawal from a Uncrystallised Funds Pension Lump Sum (UFPLS)?

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.

Eligibility

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.

Find out more in our UFPLS – Withdrawal of Entire Fund Guide

Tell me more about a withdrawal of an enitre fund from a UFPLS