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Taking payments from an existing Income Release plan

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Before you start

This form is for advisers submitting income drawdown requests when providing regulated financial advice.

If you're not giving regulated advice, your client should complete the customer form.

 

When to use this form

Use this form to help clients:

  • Request a one-off tax-free payment
  • Change their monthly income payments
  • Close their Income Release plan
  • Set up monthly income payments

 

When not to use this form

Call our Income Release team on 0345 850 8953 to handle your request if your your client:

  • Is using capped drawdown
  • Wants to change income frequency
  • Chooses to automatically increase income (e.g. by RPI)
  • Wants to use the Income Tap feature

For taxable one-off payments where advice has been given, please use our one-off taxable Income Request form instead.

 

To speed things up, please have this information ready before you start:

  • Your firm’s contact details (including agency number)
  • Your client’s contact details
  • Your client’s policy/plan number
  • Your client’s National Insurance number
  • Your client’s bank details
  • Information about your client’s remaining Lump Sum Allowance (if requesting tax-free cash)

We may also need to complete electronic identification checks to verify your client's identity. Please ensure you have their consent before proceeding.

 

Please note

We’ll process this request on the understanding that your client has already been provided with a compliant illustration showing how this withdrawal could affect their plan, if one’s needed.

If you’d like Royal London to provide the illustration, you can request one by contacting us directly on 0345 850 8953.

 

Start request

All fields are mandatory unless marked as (optional).

All information collected on this form will be used to process this request. For details on how we use this information, including any client-related data, please read our privacy policy (opens in new window).

Before you begin, can you confirm that you are a financial adviser (or an agent acting on their behalf) and that this request is based on regulated financial advice?

1. Your details

 

Adviser information

2. Type of payment request

3. Payment request details

 

Make a one-off tax-free withdrawal

 

Set up regular income payments

What type of monthly payment would your client like to request?

Payment amount

If you'd like to combine tax-free and taxable income payments, at least 25% of the total payment needs to be tax-free.

We'll pay both types of income at the same time each month.

Please tell us the gross amount (before tax) and the tax-free amount they wish to receive each year.

Payment amount

To set up your clients taxable monthly payment, please tell us the gross amount (before tax) they wish to receive each year.

If this is your client’s first taxable income payment, this will trigger the Money Purchase Annual Allowance (MPAA) and it is your client’s responsibility to inform other Providers within 91 days of doing so.

Payment amount

To set up your clients tax-free monthly payment, please tell us the amount they wish to receive each year.

 

Change existing regular payments

What request are you submitting?

Payment amount

If you'd like to combine tax-free and taxable income payments, at least 25% of the total payment needs to be tax-free.

We'll pay both types of income at the same time each month.

Please tell us the gross amount (before tax) and the tax-free amount they wish to receive each year.

Tell us the total gross (before tax) amount over a full year for your client. For example, if they want to receive £1000 each month, enter £12,000 for the year.
If there is no tax-free element, please put 0 below.
Please select the month you would like this to take effect.

Payment date

  • Choose a payment date between 1 and 28 of the month
  • Make sure to give us at least 10 business days for the payment to be set up
  • If we set up the payment after your chosen date, we’ll arrange it for the same date next month.
  • If you choose the 6th, 7th, 8th or 9th of the month, two payments may fall in the same tax month. This can make your client’s tax deductions higher than expected.
  • If the payment date is a bank holiday or weekend, we’ll pay the previous working day.
  • Any tax rebates from these situations are usually applied the following month.

For more details, please call us on 0345 850 8953.

 

Close plan and withdraw all funds

The final payment to your client may be taxable income, or a mix of tax-free cash and taxable income, depending on whether the full tax-free cash entitlement has been taken.


If your client is withdrawing all funds and closing their Income Release plan they can’t return this money to Royal London. HMRC have now made it clear that cancellation rights do not apply to any tax-free or taxable withdrawals.

We are still in the process of updating all of our customer communications in relation to this matter. In the meantime, your client should disregard any reference to cancellation rights or a cooling off period.

Once the plan’s closed, we’ll send your client a P45 by post within six weeks. 


Please confirm that your client has instructed a full withdrawal of all funds, and understands this will result in the permanent closure of their Income Release Plan.
Lump Sum Allowance check Please confirm this payment won't exceed your client's available allowance.

Give our service team a call on 0345 850 8953. Lines are open 8am to 6pm, Monday to Friday, excluding bank holidays.

Before proceeding

  • Make sure there are sufficient funds available in your client’s plan.
  • Please check all figures before proceeding.

4. Your client's details

We’ll check the information you provide against our records to verify their identity and process this request.

Title

5. Your client’s payment details

Are we paying to the same bank details as the last payment made to your client?

 

Once you’ve submitted your request, we’ll process it - and issue any payments required – within 5 to 7 to working days.

Account details:

  • Must be in your client’s name (or joint names)
  • Must be a UK bank account
  • Can’t be a Post Office account or ISA
  • Must be a personal bank account, not a business account
Must be 6 digits long and only contain numbers.
Must be 8 digits long.

6. Identity verification

We complete digital identity checks on your client to comply with anti-money laundering regulations:

  • Most checks are automated and instant.
  • We may work with trusted third-party providers to carry out the checks.
  • No documents are needed unless we contact you.

See our privacy notice (opens in a new window) for full details.

Can you confirm that we have your client’s consent to complete these checks?

Give our service team a call on 0345 850 8953. Lines are open 8am to 6pm, Monday to Friday, excluding bank holidays.

7. Before you submit, please note

Once you’ve submitted your request, we’ll process it - and issue any payments required – within 5 to 7 to working days. We’ll send you an email confirmation once your request has been processed. If we need anything else, we’ll get in touch by email to explain what’s needed.

 

For new regular income payments, or changes to an existing regular payment:

  • If the request is for repeat taxable income payments and no additional tax-free allowance is being used, we’ll process it and provide a document for your records. We won’t send any further confirmation.

 

For full withdrawals and plan closures:

  • We’ll process any remaining tax-free amount first, followed by the taxable income. Payments may arrive on different days. We’ll post a P45 to your client within six weeks of the completion of the process.

 

Additional information

  • If tax becomes payable due to recycling tax-free cash or incorrect information in step 4, your client is responsible for any HMRC penalties.
  • They may also need to reimburse Royal London if we incur a penalty from HMRC. Please ensure your client understands this before you submit.
  • We’ll process your request on the understanding that your client has received a compliant illustration, if one is required, that shows how this withdrawal may affect their plan.
  • If you need an illustration, please contact us to request one.

 

Confirm and submit

 

Please confirm that the information and every answer you’ve provided in this form is correct and complete to the best of your knowledge and belief. Please also confirm that you have read and accept the information provided above.