Flexible Drawdown Pension
Flexible Drawdown PensionFrom 6 April 2011 under flexible drawdown there's no limit on the amount of income that can be drawn each year - the individual can take their entire income drawdown fund out in one go if they really want to!The usual tax free lump sum is allowed, but any other withdrawals taken by the individual will be taxed as income in the tax year they're paid. If an individual becomes non-UK resident whilst in flexible drawdown, any income drawn when non-resident will be subject to UK tax if they return to the UK within five tax years of taking it.To opt for flexible drawdown, an individual must:•meet the minimum income requirement £20,000 pa ; and•not make contributions to a money purchase pension scheme in that tax year - including employer and third party payments; and•not be an active member of a final salary scheme at the time of making the declaration. Protected rights funds can use the normal income drawdown basis but can't go into flexible drawdown.