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UFPLS - Anyone using this mechanism?
Barista
Posted: 10 March 2025 14:19:08(UTC)
#31

Joined: 09/02/2015(UTC)
Posts: 31

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Simon Grech;336775 wrote:
Just refreshing this debate a little

I have just semi retired and will fully retire over the next 12 to 18 months. I am 55.

I would like to take a montly UFPLS of just over £1600 which would all be Tax free as I want be working.

To work into the mix I would like to transfer away from HL to probably either AJ Bell / III as HL are just too expensive. There are curretly some cashback deals to sweeten things a little. I'd be interested to hear from anyone who has made the move from HL to III/AJ.

Anyhow returning to monthly UFPLS given I am looking to transfer I wanted to check the withdrawl process.

From III
How to take UFPLS from your ii SIPP
There are no charges for taking a lump sum UFPLS payment with ii. It's all covered by your monthly SIPP fee.

<<You can now take a lump sum UFPLS payment using your online account.>> fact it says now makes me wonder whether things have recently changed?
You’ll need to follow the process every time you want to take a lump sum.
The process should take around 30 minutes. It usually takes no more than 10 working days after this to receive your payment.
Click here for a step-by-step guide on how to take an UFPLS lump sum payment online.
Link takes you here https://www.ii.co.uk/ii-...s/sipp/ufpls/take-ufpls
Seems straight forward enough. 30mins a month for someone who is retired doesn't seem so onerous.
As someone already mentioned taking a UFPLS (keep the taxman at bay in terms of IHT). Also I like that in a rising market you are effectively able to take more money tax free.

One question if I take ufpls for a few years but then suddenly want to take a larger amount tax free then could I switch to flexible access drawdown so I can take the whole of my remaining pot 25% tax free?

Many thanks




Yes, any remaining uncrystallised money can be taken via flexible drawdown whenever you like, even if you have previously being withdrawing via UFPLS. Also, vice versa, can switch from flexi drawdown to UFPLS for any remaining uncrystallised cash.
2 users thanked Barista for this post.
Jay P on 10/03/2025(UTC), Taltunes on 10/03/2025(UTC)
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