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YouInvest Drawdown

Darka
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YouInvest Drawdown

#404772

Postby Darka » April 16th, 2021, 5:16 pm

My wife has a SIPP with YouInvest and she aims to take out some tax free cash in September.

She will only crystallise enough so that the 25% tax free covers some planned decorating work, with the taxable 75% of that sum being left in drawdown and untouched.

Next March, she intends to take another 25% tax free sum, thereby crystallising the remainder of the SIPP, with the taxable 75% of that sum also going into the drawdown pot.

None of the drawdown pot will be touched until the following March at which point she will only take out the natural yield, i.e. that years dividends.

My question is, during the period when only part of the SIPP is in drawdown with the remainder being untouched - where do any dividends go?
Do they get split across the drawdown pot and the untouched part of the SIPP?

regards,
Darka

swill453
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Re: YouInvest Drawdown

#404781

Postby swill453 » April 16th, 2021, 5:31 pm

Youinvest don't distinguish crystallised and uncrystallised in what you see - it's all a single SIPP, they just know behind the scenes what proportion has been crystallised.

Dividends just go in this pot. They will increase the uncrystallised proportion, but that won't be visible to you, the back office keep track of it.

Scott.

Darka
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Re: YouInvest Drawdown

#404783

Postby Darka » April 16th, 2021, 5:33 pm

swill453 wrote:Youinvest don't distinguish crystallised and uncrystallised in what you see - it's all a single SIPP, they just know behind the scenes what proportion has been crystallised.

Dividends just go in this pot. They will increase the uncrystallised proportion, but that won't be visible to you, the back office keep track of it.

Scott.


Thanks Scott,

That's what I hoped would happen and is ideal for our plan.

Arborbridge
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Re: YouInvest Drawdown

#404784

Postby Arborbridge » April 16th, 2021, 5:38 pm

Darka wrote:My wife has a SIPP with YouInvest and she aims to take out some tax free cash in September.

She will only crystallise enough so that the 25% tax free covers some planned decorating work, with the taxable 75% of that sum being left in drawdown and untouched.

Next March, she intends to take another 25% tax free sum, thereby crystallising the remainder of the SIPP, with the taxable 75% of that sum also going into the drawdown pot.

None of the drawdown pot will be touched until the following March at which point she will only take out the natural yield, i.e. that years dividends.

My question is, during the period when only part of the SIPP is in drawdown with the remainder being untouched - where do any dividends go?
Do they get split across the drawdown pot and the untouched part of the SIPP?

regards,
Darka


That used to puzzle me too, particularly as I have been taking monthly dollops. As Swill says, it's all one pot and you just trade it as usual and in some way they proportion it. My unchrystalised part seems to fluctuate up and down, I assume according to the market (they send me a statement of value after each drawdown payment) so whatever is happening seems dynamic I'm just assuming the HMRC approve of their method and I don't get a nasty surprise one day.

Arb.

Darka
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Re: YouInvest Drawdown

#404785

Postby Darka » April 16th, 2021, 5:44 pm

Arborbridge wrote:That used to puzzle me too, particularly as I have been taking monthly dollops. As Swill says, it's all one pot and you just trade it as usual and in some way they proportion it. My unchrystalised part seems to fluctuate up and down, I assume according to the market (they send me a statement of value after each drawdown payment) so whatever is happening seems dynamic I'm just assuming the HMRC approve of their method and I don't get a nasty surprise one day.

Arb.


Thanks Arb,

It does kind of make sense and yes I'd prefer not to have a nasty surprise one day but YouInvest must know what they are doing :D

Arborbridge
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Re: YouInvest Drawdown

#404787

Postby Arborbridge » April 16th, 2021, 5:51 pm

Darka wrote:
Thanks Arb,

It does kind of make sense and yes I'd prefer not to have a nasty surprise one day but YouInvest must know what they are doing :D


Yes, it is worked out on the proportion between chrystallised and non at the start, thereafter keeping tabs on that proportion, less what you have drawn each time. They don't distinguish which bits are invested in which shares/funds so there's no worrying about whether the chrystallised part has risen more than the non-part or vice versa. It would be hopelessly complex otherwise.

Arb.


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