An FSAVC (free standing additional voluntary contribution
) cannot provide you with benefits in the form of lump sum tax-free cash.
You could simply stop paying into the plan and leave the money to grow where it is, or you may be able to transfer it at no cost into a Free Standing Additional Voluntary Contribution
plan with the same pension office.
This is done by contributing to Additional Voluntary Contribution Schemes (AVCs), Free Standing Additional Voluntary Contribution
Schemes (FSAVCs) and/or Stakeholder pension schemes.
Tax relief applies on Additional Voluntary Contributions (AVCs) and Free Standing Additional Voluntary Contributions
Answer: For the benefit of readers, AVC stands for additional voluntary contributions made to a company pension scheme and FSAVC stands for free standing additional voluntary contributions
, typically run by an insurance company chosen by you, rather than the main scheme trustees.