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EGTP - he posted two consecutive posts with different titles basically saying the RNS had been typed and it was time to paaaaarty....posts got removed and seemingly so did he. Gotta go ....big black SUV just pulled up outside my house...
YarYar500 - you are of course correct. I was combining old knowledge with recent advice and getting it wrong. BUT....
When an individual reaches age 75, any pensions that are still uncrystallised at that point will be tested against their available LTA. If there is insufficient LTA, then the LTA charge of 25% will be levied on the excess (the 55% charge is not an option at age 75).
well i have the advantage (in this situation anyway!) of being over 55, so I am able to manage the situation if the share price goes bananas. If your shares are in your SIPP and you are 8 years away from 55, then all you can do is just relax and see what happens. Nothing you can really do about it (except divorce) - nice problem to have.
The point of cystallisation is when you elect to take the tax free cash. Lets say my pot is approaching £1.07m - so to avoid going over the LTA, I take the £250k (ish) tax free cash. At that point, whats left of my fund is free to grow to whatever size it wants until I am 75 (another crystallisation point when i have to take an annuity). If i am over the LTA at 75 then you will incur a tax charge of 55% on the amount over the LTA. You just have to make sure that between taking your tax free cash and age 75 you manage the amount of income you draw out to ensure you are not over the LTA at point of taking the annuity (75).
thats my understanding anyway - having once been an adviser and having taken advice recently.
copied and pasted from Primary Bid site:
Can I make investments through PrimaryBid via my ISA or SIPP?
Unfortunately, you can't invest ISA or SIPP funds via PrimaryBid due to HMRC restrictions that are out of our control.
The alternative is to buy the shares from us with a debit card and transfer them to a General Investment Account for the same broker where you hold your ISA or SIPP. You can then do a "Bed & ISA", a process where you sell the shares from your investment account and then immediately buy them back with ISA or SIPP funds. There is however a tax liability on any gain and probably costs incurred from your broker for dealing. You will need to contact your broker in regards to this.
RebeccaB - Sagetrade is talking about buying shares in an IPO through Primary Bid - which you cant do via funds in an ISA or SIPP. You have to have a normal trading (F&S) account to accept the shares you get allocated in the IPO. You can then transfer these to an ISA thru B&B if you want to.