An easy target especially as asset values have increased over the last 10-plus years and many people are sitting on large uncrystallised
The FCA however said that other changes, which include extending certain advice requirements to cover withdrawal through uncrystallised
funds pension lump sums (UFPLS), will become immediately effective.
41, at 34 ("Further an uncrystallised
floating charge has no priority against execution creditors, landlord's distress, set-offs and possessory liens.
Equity ISAs,however, remain highly appropriate for the tax- paying investor for whom capital gains may present a problem, and also for those to whom capital gains could create a difficulty in the future,including: Investors with uncrystallised
capital gains on their portfolio which already exceed the annual personal capital gains exemption; Younger investors, with a longer-term investment perspective and Investors who have the expectation of acquiring or inheriting significant assets,for whom the future tax benefits of ISAs make them worth building up now.
UPFLS is short for Uncrystallised
Pension Fund Lump Sum.
For retirees overall, the most popular pension arrangement (34 per cent) is the uncrystallised
funds pension lump sum (UFPLS) method, which allows savers to take chunks of their money while the rest remains within the pension, and therefore sheltered from tax.
AS announced by the Chancellor George Osborne last September, from April 6, 2015, individuals will have the freedom to pass on their unused defined contribution (DC) pension savings to any nominated beneficiary when they die, and the current 55% tax charge that applies to lump sums paid from drawdown funds (when death occurs both before and after age 75) and uncrystallised
funds (when death occurs after age 75) will be abolished.
Consistent tax treatment at all ages, for all pension products and across both uncrystallised
and crystallised funds will provide simplicity for customers and improve flexibility in retirement planning.
A It seems strange that your provider or plan can facilitate an uncrystallised
fund pension lump sum transaction - where you take all the money - but cannot offer a drawdown facility where you take your tax-free cash and the rest stays invested.
Of these, 60,600 (34 per cent) used uncrystallised
fund pension lump sums (UFPLS), both partial and full withdrawals; 54,604 (30 per cent) used income drawdown, both partial and full withdrawals; 40,401 (23 per cent) were full withdrawals using small pot lump sum payments; and just 23,385 (13 per cent) were used to purchase an annuity, albeit some people want absolute security, knowing the money will come in month on month however long they live, so a significant market for annuities will remain.