SIPP funds as cash for financial requirements

[paulsingle]

From Appendix FM Section 1.7 (May 2016) Financial Requirement

 

"7.4.4. For example, in the UK a ‘stocks and shares’ Individual Savings Account (ISA) does meet the definition of a savings account and the funds can be considered as cash savings if all the requirements above are met. Likewise, a pension savings account from which savings can be immediately withdrawn."

 

Does anyone know if funds within a SIPP count as cash?

In the past 8 months I have twice taken tax free cash from my SIPP. Withdrawing takes two or three weeks as forms have to be sent, filled out, returned and processed.

[rasg]

I am pretty certain that the account has to be instant access. I know Premium Bonds didn't qualify and I can cash them in in two or three days.

[7by7]

On ‎01‎/‎06‎/‎2017 at 10:31 AM, paulsingle said:

In the past 8 months I have twice taken tax free cash from my SIPP. Withdrawing takes two or three weeks as forms have to be sent, filled out, returned and processed.

As your quote from  para 7.4.4 of the financial requirement appendix says

Quote

Likewise, a pension savings account from which savings can be immediately withdrawn. 

So I think It depends on whether or not two to three weeks is considered by UKVI to be immediate.

 

Sorry I can't be more definite.

 

Can you provide all the relevant evidence as per paragraphs 11 and 11A of the specified evidence appendix?

 

Edit;

Having done a quick search, I found the following from 2 years ago on legal advice forum. There is no response to say whether it was successful or not.

Quote

In respect of the SIPP, what I would suggest is that you obtain a letter from your SIPP provider, confirming that you are able to withdraw the money available to you at any time. They should also state in the letter that should you wish the SIPP can be converted in to cash at your request but you would inquire a tax penalty. The letter should make it clear that the money can be immediately withdrawn.
This would be the best way to ensure that the home office understand that the SIPP is much like the ISA.

 

Edited June 2, 2017 by 7by7

[paulsingle]

1 hour ago, 7by7 said:

 

Can you provide all the relevant evidence as per paragraphs 11 and 11A of the specified evidence appendix?

 

Thanks for your response 7by7.

I can provide that evidence. I will ask my provider to write confirming that I can withdraw all or part of the funds in my SIPP immediately and confirming that I do not have to give notice.

[tibap]

Hi

 

Last year I transferred my pension pot into a SIPP in the UK with Hargreaves Lansdown and took 25% in tax free cash, the remaining I can take as a monthly income (subject to tax) or I can take the whole of the remaining fund at any time (subject to tax).

 

Hope this helps.

 

 

[paulsingle]

On ‎03‎/‎06‎/‎2017 at 9:55 AM, tibap said:

Hi

 

Last year I transferred my pension pot into a SIPP in the UK with Hargreaves Lansdown and took 25% in tax free cash, the remaining I can take as a monthly income (subject to tax) or I can take the whole of the remaining fund at any time (subject to tax).

 

Hope this helps.

 

 

I did the same about a year ago. I have invested in 3 multi-funds of low to medium low risk. I have taken part of my tax-free allowance but tax-free or otherwise, as you say, the entire fund can be taken at any time and will be subject to income tax (other than the tax-free allowance).

My query was whether it will be considered acceptable under the financial requirements. ISA funds are considered acceptable even if stocks and shares ISA rather than  cash ISA so I see no reason why SIPP funds should not be acceptable. SIPP accounts are considered to be like bank accounts under the new pension rules.