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Income Drawdown

Flexi-access Drawdown

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Similar to flexible drawdown there are no limits of what you can drawdown, however you do not require a minimum level of secure income required to get access to it. Individuals in flexi-access drawdown are entitled to make contributions up to £10,000 (2024/2025).

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Flexible Drawdown
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This type of income drawdown has disappeared with funds automatically converting into Flexi-acess drawdown. Before 5 April 2015 individuals aged over 55 who met the minimum income requirement (MIR) per annum, were able to drawdown an unlimited amount out of their funds and treated as income for tax purposes.

 
Capped Drawdown

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It is no longer possible to designate funds into a new capped drawdown arrangement since April 2015. After you have taken your tax free cash your remaining funds are invested and designed to give your an income. This income is not guaranteed for life and the maximum is calculated using GAD (Government Actuary's Department) tables. Income is capped at 150% and is reviewed every 3 years until age 75.

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Money-purchase annual allowance (MPAA)

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If you’ve flexibly accessed your benefits, the Money Purchase Annual Allowance (MPAA) is the amount that can be paid in one year to your money purchase arrangements without a tax charge applying.  For the 2024/25 tax year the MPAA will be £10,000.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

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HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen

ALM Financial Ltd

49 Church Street, Portadown, Co.Armagh BT62 3EU

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T: 028 3839 3050
F: 028 3839 3080

E: info@almfinancial.co.uk

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Approved by The Openwork Partnership on 30/08/2024

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Andrews Loynton & McCulla is a trading style of ALM Financial Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Registered address 49 Church Street, Portadown, Co. Armagh, BT62 3EU. Registered Number: NI701108.

 

The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.

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Approved by the Openwork Partnership on 15th February 2023

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