Uncrystallised
Funds Pension Lump Sum

UFPLS Taxation

With an Uncrystallised Funds Pension Lump Sum (UFPLS), typically 25% of each withdrawal you make will be tax-free, every time you withdraw a lump sum. The remainder would be taxed as an income.

Your annual allowance, should you take a UFPLS payment, is restricted to £4,000 for money purchase pension schemes, often referred to as the money purchase annual allowance. You are not permitted to pay contributions in respect of unused relief from previous taxation years.

While we encourage flexibility with your pension income, the requirement for clear advice has never been greater. Each new pension freedom often comes with unseen consequences, increasing the risk of decisions being made which could cause financial discomfort in the future. Without sound financial advice, there is the risk your pension pot may not last the full duration of your retirement.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you selected and the value can therefore go down as well as up. You may get back les than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.