swill453 wrote:Chrysalis wrote:ReallyVeryFoolish wrote:There are no separate pots at II. There is a link that you follow in your SIPP and that gives you the numbers of crystallised v non-crystallised assets.
Thanks. Can you have different funds held in each portion or is it a straight pro rata split?
If it's like AJBell then the answer to that is "neither". There's no "split" or "portions" at all. The (single) pot comprises all your assets, both crystallised and uncrystallised.
You can see this in action with what my wife does every year. Put in £2880 cash, which is increased to £3600 with tax relief. This money is, by definition, uncrystallised.
However some of my wife's SIPP
is crystallised. She can immediately drawdown the same £3600 cash (without generating another benefit crystallisation event) and it is deemed to come from the crystallised tranche.
Scott.
Curiouser and curiouser!
When I said a ‘pro rata split’ I was assuming that if there was no visible separation then, by default, there would be the same asset allocation across crystallised and uncrystallised portions.
But the example you give, implies that this isn’t the case. When your wife draws down the cash does she have to specify whether it comes from crystallised or uncrystallised funds? And in the latter case if it’s UFPLS or tax free cash?
And, if assets can switch pots (ie the uncrystallised cash becomes part of the crystallised pot) how on earth do they calculate the growth in the drawdown funds, for the purposes of the second LTA test? I assume at age 75 they MUST have to apportion the funds pro rata (ie assume same asset allocation across both crystallised and uncrystallised? I don’t know how they would do that, how do they calculate what proportion of the funds remaining are uncrystallised?). I mean, I’m sure it must be possible or they wouldn’t be able to do it, but it certainly doesn’t seem easy to understand or intuitive. And I assume you couldn’t choose to have a different asset allocation for uncrystallised funds compared with the taxable drawdown part?