(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
The member/survivor may vary the amounts drawn down from year to
year if they so wish. The chosen amount of income to be paid
through a drawdown arrangement should be paid for a period of not
less than one year unless a review occurs within any particular
year which would entail the commencement of a new 3 year cycle -
see
PSI25.2.8. In the absence of a review,
income cannot be varied within a year. For example, it would not be
acceptable for 6 months worth of 100% income to be drawn with the
following 6 months being based on income at 35%
The onus is on scheme administrators to ensure year by year
that actual and/or amount of the withdrawals remain within the
limits.
Once started, the pension in the form of income drawdown must
not be stopped until the member's/survivor's death or until the
whole of the member's/survivor's fund is utilised for annuity
purchase (or until the survivor ceases to be eligible to receive a
pension under the scheme rules). The amounts withdrawn under income
drawdown will be subject to PAYE in the same way as annuity
instalments.
