The Lemon Fool

I started taking my pension benefits a year ago, and have crystallized 103% of my LTA, of which 29% was from a SIPP (where I withdrew 25% TFLS) and the remainder for DB schemes (where I did not).
I have further ~50k assets in my SIPP which are uncrystallized, which previously would have been accessible at a punitive rate of taxation. I had been leaving them there as an emergency reserve (or an IHT efficient means of passing on my demise).
My understanding was that with the LTA in the process of being abolished, but a limit of TFLS still remaining) I should be able to access the tax free lump sum portion of this rump of assets, as I am well under the ~250k TFLS limit.

I am trying to work out how to extract this from my HL SIPP, but they are saying that if I have taken benefits of over LTA, then I cannot withdraw further TFLS.
Have I misunderstood this, or have they?

TUK020 wrote:I am trying to work out how to extract this from my HL SIPP, but they are saying that if I have taken benefits of over LTA, then I cannot withdraw further TFLS.

The LTA hasn't yet been abolished, it's just that the tax charge on crystallising more than it has been set to 0%. As such, the rules haven't changed so I think HL are right and you cannot take a TFLS from crystallising amounts over the LTA limit. From next April the LTA will be abolished and you may then be able to take the additional TFLS - whether you can or not will depend on exactly how the legislation is worded.