UFPLS and tax

richallum

We've just published a blog by Colin Stewart  about taking an UFPLS and the tax position.  Might be useful if you're about to do one of these.  You can read it here.

JoCHague

I had this a couple of weeks ago where the payment was a one off withdrawal for a non tax payer and was under the personal allowance. Provider assumed it's the first of identical monthly withdrawals and taxed the client based on the total annual income with only £883 PA to offset against it.

On the plus side though, I'm assured that HMRC are turning round the P55 repayment request forms within 30 days.

benjaminfabi

In our experience, most clients (and advisers) are requesting net amounts, so we do this calculation on each case that we see.

My understanding is that the processing basis set out in https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/429068/Newsletter_67.pdf remains current.

We have requested more than one payment for a client invested on the Standard Life Wrap this year and they are operating Month 1 for every payment, even though they have the client's tax code.

Colinstewart76

EVEN though they have the tax code - that seems mean

benjaminfabi

Yeah I don't know why. I'm going to write to them for an explanation.