Is it a bad idea to withdraw funds from ARF to fund house move.

[Grueler]

We are trying to downsize and have about €260,000 in cash but we are constantly outbid. We have about €800 a week in state pension coming in so I am thinking
of withdrawing about €40,000 from my ARF to get us across the line. I realise this will cause the fund to run out sooner, but are there any other obvious reasons for not doing this ?

 

[Dave Vanian]

You're taxed on withdrawals from an ARF as it it was earned income so you'll pay tax and levies on the €40,000 as if you had earned an additional €40,000 this year.

 

[Grueler]

You're taxed on withdrawals from an ARF as it it was earned income so you'll pay tax and levies on the €40,000 as if you had earned an additional €40,000 this year.

Thanks for the reply, would this be more expensive than getting a personal loan from a bank until we sell our existing house?

 

[NoRegretsCoyote]

would this be more expensive than getting a personal loan from a bank until we sell our existing house?

It depends on your tax rate, but almost certainly yes.

 

[50andOut]

is the 260k cash, from selling your existing ppr? Or do you have a home to sell also?

not clear how its a downsize if you are getting outbid and there would presumably be different options available if you had additional assets

 

[Grueler]

is the 260k cash, from selling your existing ppr? Or do you have a home to sell also?

not clear how its a downsize if you are getting outbid and there would presumably be different options available if you had additional assets

The 260K is cash savings, we want to stay in our own house until we buy something smaller and have it ready to move into.