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Fixed Protection 2016 - excess

GolfPutt21GolfPutt21 Member
in Technical stuff

Hi all,

We have a client who has a pension valued at £1.35m and has fixed protection 2016, they are planning on taking maximum tax-free cash from the fixed protection and holding the crystallised funds in a drawdown pot.

The client is with Royal London - how do the provider differentiate between the amount of funds up to £1.25m and the excess over the fixed protection 2016 (£100,000)? As this will obviously be taxed at different rates for any income/lump sums taken over the LTA?

Thanks

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Comments

  • Andy_SchleiderAndy_Schleider Member

    I'd suggest speaking with RL as it may differ from provider to provider - a BDM instead of someone in the call centre would probably be best

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  • TimMatthiasTimMatthias Member

    If you are staying with Royal London, they use their "Income Release" product to hold the crystallised funds, with any uncrystallised funds remaining in the original plan.

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