Uncrystallised Funds Pension Lump Sums

Published by Ian Ward on

The Taxation of Pensions Act 2014 allows pension savers who have reached pension age to draw from their pension funds without limit from 6 April 2015.

Savers making use of the new pension freedoms are said to have ‘flexibly accessed pension’. Uncrystallised Funds Pension Lump Sums (UFPLS) is a simpler way of drawing out all funds being accessed in one go, compared with receiving a pension commencement lump sum and then asking for the whole of a flexi-access drawdown fund to be exhausted.

This technical briefing details the rules regarding Uncrystallised Funds Pension Lump Sums.

"By providing a simpler way of drawing funds in one go, the Government has allowed the possibility of a pension scheme acting more like a bank account."