Doctor Houx
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Yes to the tax rate and sort of to Crystalising. This is the sum you take out either use to buy an annuity or the sum(s) you draw down.Just want to be clear on a few terms. Please comment.
Headline rate = the highest rate of income tax I pay? Say 40%.
Crystallising = buying the annuity or other product that will keep me in beer and petrol in my old age.
This leads onto the other point about the LTA as the sum you crystallise each time you withdraw is taken as a % of the LTA at that time so say you withdrew £100k and the LTA is £1M then you have used 10% of your LTA. Only when you go over 100% of your LTA from all the withdrawals you have made Do you then pay 55% tax on all withdrawals over the 100% LTA.
Clear as I can make it, but see an IFA before making any decisions.