When will my Vantage SIPP be tested against the lifetime allowance?
Your Vantage SIPP funds will be tested against the lifetime allowance at the following times:
- When you take certain lump sum payments (including an UFPLS) from your SIPP before age 75.
- When you move funds into drawdown before age 75, even if you choose not to draw an income.
- When an annuity is purchased with your funds before age 75.
- When you reach age 75; this includes any remaining funds in your SIPP from which you have not already taken benefits.
- On transfer to a Qualifying Recognised Overseas Pension Scheme before age 75.
- When your beneficiary takes a lump sum payment, moves into drawdown or purchases an annuity using funds which have not already been moved into drawdown (where death occurred before 75).
Every time your benefits are tested against the lifetime allowance (before death) you will be required to provide information to enable us to do this. For any funds already in drawdown, only the growth in the value of the funds since they were first moved into drawdown is tested when you use them to buy an annuity before age 75, or when you reach age 75.
Tax rules can change and tax liability depends on circumstances.