Capped drawdown

Resource type: Glossary item

Status: Maintained

Jurisdiction: United Kingdom

A form of drawdown pension (www.practicallaw.com/7-507-1079) available since 6 April 2011 for a member of a registered pension scheme (www.practicallaw.com/5-201-6474) who has money purchase (www.practicallaw.com/0-107-6857) benefits and who has reached normal minimum pension age (www.practicallaw.com/5-204-0445). If the member does not satisfy a statutory minimum income requirement of £20,000 a year, his income withdrawals under the scheme cannot exceed 100% of the value of a comparable annuity. A review must be conducted every three years until the member reaches age 75 and from then on annually. See also flexible drawdown (www.practicallaw.com/4-507-1108).

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Resource ID: 2-507-1114
Products: Competition, IP&IT, PLC Arbitration, PLC Cross-border, PLC EU, PLC Glossary, PLC UK Commercial, PLC UK Competition Law, PLC UK Construction, PLC UK Corporate, PLC UK Dispute Resolution, PLC UK Employment, PLC UK Environment, PLC UK Finance, PLC UK Pensions, PLC UK Private Client, PLC UK Property, PLC UK Public Sector, PLC UK Restructuring and Insolvency, PLC UK Share Schemes & Incentives, PLC UK Tax
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Related content

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Topics

Members, Benefits and Pension SharingMembers, Benefits and Pension Sharing (http://environment.practicallaw.com/9-103-1341)
Pension TrusteesPension Trustees (http://environment.practicallaw.com/4-207-2074)
Tax and Accounting: PensionsTax and Accounting: Pensions (http://environment.practicallaw.com/8-103-1346)

Practice note: overview

Pensions tax: overview Pensions tax: overview (http://crossborder.practicallaw.com/topic6-204-0440)

Practice notes

Pension schemes: benefits on retirement Pension schemes: benefits on retirement (http://crossborder.practicallaw.com/topic5-502-1740)
Pensions tax: authorised pension payments Pensions tax: authorised pension payments (http://crossborder.practicallaw.com/topic4-380-6324)
Pensions tax: relaxing the requirements to take benefits by age 75 Pensions tax: relaxing the requirements to take benefits by age 75 (http://crossborder.practicallaw.com/topic0-504-9237)

Glossary

Drawdown pension Drawdown pension (http://crossborder.practicallaw.com/topic7-507-1079)
Flexible drawdown Flexible drawdown (http://crossborder.practicallaw.com/topic4-507-1108)
Money purchase scheme Money purchase scheme (http://crossborder.practicallaw.com/topic0-107-6857)
Normal minimum pension age Normal minimum pension age (http://crossborder.practicallaw.com/topic5-204-0445)
Registered pension scheme Registered pension scheme (http://crossborder.practicallaw.com/topic5-201-6474)

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