SIPP drawdown after lump sum

[Unix]

Good evening,

What are the rules regarding taking money out of your SIPP after the 25% tax free lump sum? If it's invested in funds etc can you just withdraw as much as you want whenever you want and it's taxed as income?

[SimonMac]

Good evening,

What are the rules regarding taking money out of your SIPP after the 25% tax free lump sum? If it's invested in funds etc can you just withdraw as much as you want whenever you want and it's taxed as income?

Yes

[Unix]

Yes

Thanks mate.

[mudskipper]

https://www.hl.co.uk/partners/search/drawdown-guide

[Fred Bloggs]

Yes

+1. You may care to consider the consequences for further contributions to your SIPP if you draw down income as well as taking the 25% lump sum.

[Unix]

+1. You may care to consider the consequences for further contributions to your SIPP if you draw down income as well as taking the 25% lump sum.

I don't plan to, just considering putting all excess cash into it as Im getting good returns and want to compound it longterm. But wanted to know if I would be forced to buy an annuity or could drawdown as I please.

[northernladuk]

Google not working in your neck of the woods?

[Fred Bloggs]

I don't plan to, just considering putting all excess cash into it as Im getting good returns and want to compound it longterm. But wanted to know if I would be forced to buy an annuity or could drawdown as I please.

Fine then, you'll have no problems. HMG rules are quite draconian around future contributions if you draw income, even GBP 1 from your SIPP. Taking the tax free lump sum, however, is fine.