Capped drawdown payment form

Transcription

1 Capped drawdown payment form This form should be used to designate some or all of your fund into capped drawdown and must be completed each time you wish to designate further funds into capped drawdown. 1 Member details Guidance notes Title: MR/MRS/MISS/OTHER Please delete as appropriate or indicate other title. Surname: Forename/s (in full): Permanent residential address including postcode: (Please note: work or care of addresses contravene HMRC requirements) 2 Current benefits Is this the first time you have elected to take benefits from any pension scheme? If Yes, go to section 3 Yes No Pre A-day benefits Were you receiving pension benefits on or before 5th April 2006? If Yes, please provide the following details Yes No Name of Pension Scheme Scheme Administrator Max annual pension payable Total Post A-day benefits Were you receiving pension benefits on or after 6th April 2006? If Yes, please provide the following details Yes No Name of Pension Scheme Scheme Administrator Value of lump sum Lifetime allowance used % % % Total % ERA/SRA/FRA Capped drawdown payment form 1 / 6

2 3 Your lifetime allowance I have the following type(s) of lifetime allowance protection or enhancements, if any apply please provide a copy of the certificate along with this application: 1. Enhanced protection My certificate reference number is 2. Primary protection Uncrystallised lump sum rights on 5 th April 2006 My certificate reference number is Primary protection factor 3. Fixed protection 2012 My certificate reference number is 4. Fixed protection 2014 My certificate reference number is 5. Individual protection My certificate reference number is 6. Pension credit factor My certificate reference number is 7. International enhancement My certificate reference number is 4 Lifetime allowance excess payments You only need to complete this section if you have used up all your lifetime allowance. How much of your fund would you like to crystallise now (choose one)? No of arrangements (1-1,000) Amount of SIPP fund How would you like these benefits paid? Taxable lump sum % Taxable income % If you have used up all of your lifetime allowance you have the option to take the excess as a lump sum or leave the remaining within the drawdown fund and draw a taxable income from it. If you opt for a lump sum we will deduct 55% tax charge and pay you the remainder If you opt for income we will deduct a 25% tax charge and leave the remainder in your fund from which you can choose to draw income from. Total % 5 Benefit payments Complete this section to tell us how to calculate your benefits How much of your fund would you like to crystallise now (choose one)? No of arrangements (1-1,000) Percentage of SIPP fund % Please read each question carefully before responding. If you provide information that is unlcear or incomplete we may require further written instructions before we can process your request Amount of SIPP fund Percentage of lifetime allowance % Enough to pay target income/pcls go to Target income/pcls section below How much lump sum do you require (choose one)? Maximum You will normally be entitled to 25% of the amount you crystallise as a tax-free pension commencement lump sum. Specified amount How much taxable income do you require per annum (choose one)? None Maximum Specified amount net/gross In addition to your pension commencement lump sum you are entitled to a taxable income, the maximum is calculated based on your fund value, age and tables provided by the Government Actuaries Department. Income payments are made on 25 th of each month. ERA/SRA/FRA Capped drawdown payment form 2 / 6

3 Does the specified amount include current payments made from your SIPP? Target income/pcls How do you want us to calculate the value of your fund to crystallise? (choose one)? Lump sum amount (PCLS) Taxable income per annum net/gross Combination of both net/gross Does the specified amount include current payments made from your SIPP? Included In addition If you already receive payments from this SIPP we we need to know if you want the specified amount in addition to the current annual income payments or if this figure includes your current annual income payments. Included Please give us an indication of your marginal rate of tax. In addition We can calculate the amount of your fund to crystallise by targeting a specific level of tax free pension commencment lump sum or taxable income. If you want your payments to be part taxable income and part tax free pension commencment lump sum then we can use a combination of both in the calculations. If you already receive payments from this SIPP we need to know if you want the specified amount in addition to the current annual income payments or if this figure includes your current annual income payments. Basic rate (20%) Higher rate (40%) Additional rate (45%) In order for us to estimate any benefits you have requested be calculated on a net basis we need to estimate your tax rate. Once in payment we will receive a coding notice from HMRC which will enable us to calculate and pay your tax accurately using a PAYE system so this may effect your income once recieved. 6 Payment instruction How do you want your pension commencement lump sum paid? Cheque payable to CHAPS, direct payment please supply bank details below BACS, direct payment please supply bank details below. If you have elected to take income, how often to you want it paid? Monthly Quarterly Annually in advance Annually in arrears If you have chosen annual income how would you like your income paid? Cheque payable to CHAPS, direct payment please supply bank details below. BACS, direct payment please supply bank details below. Please supply account details if you have requested a direct payment or if you have requested monthly or quarterly income payments Bank/Building Society Address including postcode: CHAPS payments cost 25 and will be received on the day we make the payment BACS payments are free but can take 3-5 days to be received after we have made the payment We will not make regular annual income payments, if you have selected annual payments you will need to contact us to request further payments when you recieve your annual statement. Monthly and Quarterly income payments will be made by bank transfer on the 25 th of the month. If possible we will pay your annual income and pension commencement lump sum as one payment. CHAPS payments cost 25 and will be received on the day we make the payment BACS payments are free but can take 3-5 days to be received after we have made the payment If you are a signatory on your SIPP bank account then you will still be required to sign a standing order mandate or CHAPS/BACS instruction We will send you the appropriate forms once we have calculated the PAYE liability on your gross pension. Sort code Account number Account name The account must be in the name of the member, we cannot make payments to third parties. ERA/SRA/FRA Capped drawdown payment form 3 / 6

4 7 Important information If this form is not completed fully we may be unable to process your request. The date of your declaration below will be deemed to be the date of the crystallisation of your benefits, even if we receive your signed Benefit Payment Request Form after that date. For the purposes of determining your available Pension Commencement Lump Sum and your maximum allowable capped drawdown pension, the assets of your pension scheme will be valued as at the date of your declaration. You should be aware of the administrative charges for your pension scheme. On the first occasion that you opt to crystallise some or all of the benefits of your SIPP for the provision of a capped drawdown pension, a fee of 275 plus VAT will be incurred. This includes a fee of 125 plus VAT for the calculation of your maximum allowable annual pension, and a fee of 150 plus VAT for the establishment of your first tranche of drawdown pension. An annual drawdown fee of 150 plus VAT will be payable in advance at each drawdown pension anniversary. A fee of 125 plus VAT will be incurred for each review of your maximum allowable annual pension, whether the review is performed at your request or because it is required by HMRC rules. A fee of 75 plus VAT will be incurred whenever you elect to designate further benefits for drawdown. All of the above fees apply whether you opt to receive a drawdown pension income or not. Under HMRC rules you may opt to receive any level of pension income up to your maximum allowable annual pension. The above details of our charges are not exhaustive. Our full Schedule of Fees & Services is available on request, and can also be downloaded from our website at: Under HMRC rules we are required to value certain pension scheme assets on a quarter up basis. Where such a valuation cannot be provided free of charge by your current fund manager, stockbroker, etc., we will employ the services of a third party firm to provide a valuation as required. By signing the declaration below you are indicating your consent that we may deduct any charges involved in employing a third party firm to provide these valuations from your pension benefits, which will be separate from and in addition to our own administrative charges. Talbot & Muir SIPP will not profit from this in any way, and the amount deducted from your pension benefits for these purposes will reflect only the cost of the valuation service provided by the third party firm. ERA/SRA/FRA Capped drawdown payment form 4 / 6

5 8 Member declaration With regard to the options selected in sections 4 and 5 I acknowledge and request that: The specified number of arrangements be opened and I acknowledge that the Scheme Administrator will be discharged from any further liabilities regarding these arrangements. The Scheme Administrator will ensure that the income taken from the arrangements designated for capped drawdown pension will be limited to the amount stipulated by the Government Actuary s Department. The Scheme Administrator will be responsible for operating a PAYE system of taxation to the income from arrangements designated for drawdown pension and will forward the necessary tax liability to HM Revenue & Customs. The Scheme Administrator cannot be held responsible in the event of insufficient liquidity within the scheme to ensure continuous payment of income derived from arrangements in drawdown pension. I confirm that Talbot & Muir SIPP have provided me with no financial advice in relation to this transaction, and nor was any advice requested. I consent to Talbot & Muir SIPP deducting from my pension benefits any costs whatsoever that may be incurred by them in carrying out my request. Signed: Member name: Date: ERA/SRA/FRA Capped drawdown payment form 5 / 6

6 Talbot and Muir Clarendon Street Nottingham NG1 5HQ Telephone Facsimile Talbot and Muir Limited provides administration to Self Administered Pension Schemes. Talbot and Muir SIPP LLP provides administration to Self Invested Personal Pensions, and is authorised and regulated by the Financial Conduct Authority registration number Talbot & Muir is the trading name for Talbot and Muir Limited and Talbot and Muir SIPP LLP, both registered in England and Wales under numbers and OC respectively. Registered office at: 22 Clarendon Street, Nottingham, NG1 5HQ, UK. Generic-CDPF01-Nov14