UFPLS Options

58- UFPLS OptionsThe UFPLS Options calculator will provide an indication of the amount of income tax paid by the client if the entire money purchase pension fund is withdrawn as a Uncrystallised Fund Pension Lump Sum (UFPLS).

Background

As from 6th April 2015 it is possible for clients with Money Purchase arrangements to withdraw all their pension fund as a lump sum. For uncrystallised funds, 25% can be paid as a tax free lump sum and the balance fund subject to income tax at the clients marginal rate. No tax free lump sum is available from Crystallised funds.

Output

As well as showing the amount of tax if all fund taken as UFPLS, the UFPLS Options calculator will also show the total tax paid if the pension fund is withdrawn over a number of years.

The amount of taxable pension withdrawn each year could be the balance amount up to the client’s personal allowance, or Higher Rate Tax threshold, or £100,000 when the personal allowance starts to reduce, or the Additional Rate Tax threshold, or by a specific amount.58a PFW

This will, of course, take account of client’s expected income.

The calculator allows for;

  • Uncrystallised or Crystallised funds.
  • Growth rate whilst ‘phasing’ pension fund fund
  • It can also provide projections of tax & benefits for those clients who are going to take benefits at a later date, may be because they have not attained age 55 or do not want to access benefits yet, and
  • for annual contributions to be paid during this period of ‘deferment’.

On a separate tab it will also show the calculations how may years that ‘phase’ level of income can be maintained.

 

Saving Instructions

On A PC

On A MAC

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