Recent press articles have suggested that an individual wishing to make a flexible drawdown declaration must
be in receipt of secure pension income of at least £20,000 that is actually paid or payable in the tax year in
which the declaration is made and this would appear to be the correct understanding.
For example, if the secure income consisted of a conventional lifetime annuity for £30,000 payable monthly in
arrears (i.e. £2,500 per month) when the annuity was first taken out the monthly income would have to be
receivable for at least 8 months of that tax year in order for the £20,000 requirement to be reached in the first
tax year.
Source Threesixty services llp
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