Ask the Experts: Drawdown arrangements?


Question: I started a drawdown arrangement two years ago and I have another policy maturing this year. Can I transfer the proceeds into my existing arrangement, and save me having to start a new one?

Answers: Fiona Tait - Scottish Life The legislation does not prevent your transferring your second pension plan into the first one before it matures - i.e. you have not yet taken any benefits from it. If benefits have already been paid from the second policy then it is not possible to amalgamate them as HMRC require that income drawdown plans can only be transferred into plans which "no other sums or assets are held at that time. In effect, it has to be dedicated for the purpose of the transfer." This is to ensure that benefits, specifically the lump sum, are not paid out twice. ...

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