Uncrystallised funds pension lump sum (UFPLS).

This concept was introduced on 6 April 2015 and allows clients to take lump sums directly from uncrystallised funds, as often as they require, without the need to go into drawdown.

For each lump sum taken, 25% will be paid tax-free with the balance taxed at the client’s marginal rate of income tax. Once the first lump sum is taken, the client will be subject to the reduced money purchase annual allowance of £4,000.

Please note: an uncrystallised funds lump sum cannot be taken where the client has primary or enhanced protection and protected lump sum rights as at 5 April 2006 of more £375,000 or where the uncrystallised funds are from a disqualifying pension credit in relation to a pension sharing order on divorce.