Self Invested Personal Pensions (SIPPs)
A SIPP is a type of pension that enables you (and/or your financial adviser) to choose investments from an almost unlimited range. These differ from traditional personal pensions offered by insurance companies whereby the investment opportunities may be restricted to a much narrower range.
Tax Relief for U.K. Residents
SIPPs work in much the same way as other U.K. personal pension schemes. You pay money in as and when you like. Relevant UK individuals enjoy tax relief at the basic rate of 20%. If you pay a higher rate of tax, you’ll usually be able to claim back even more through your tax return. You need to be under age 75 to receive tax relief. You should also ensure that you don’t contribute any more than 100% of your earnings (subject to the annual allowance – currently £40,000) after tax relief has been received or £3,600, if this is greater. Inside a SIPP, your money grows free from UK capital gains and income tax with the exception of some un-reclaimable withholding tax on dividends.
Tax benefits depend on individual circumstances and tax rules are subject to change.
Taking Money From Your SIPP
It is possible to starting drawing your money from your 55th birthday (or your 57th from 2028), even if you’re still working. You can usually take up to 25% of your pot tax free. The rest of your withdrawals will be taxed as income. There are various ways to withdraw money from a SIPP. Contact us for further details.
Who Can Invest in a SIPP?
SIPP’s are available to both U.K. and non U.K. residents. Non UK residents can normally only transfer in benefits from other UK pension schemes. They may also be able to make ongoing contributions for a pre-defined period of time after leaving the UK, in specified circumstances.
Abacus Wealth Management SIPP
Abacus Wealth Management (in conjunction with Seven Investment Management) would be pleased to discuss its unique SIPP proposition with you.
No Trustee Fees or Dealing Fees
Unlike many competitors SIPP’s, there are no set up or annual trustee fees. Neither are there any fees for buying and selling investments.
Easy to Monitor
The Abacus Wealth Management SIPP also makes it easy for you to monitor your pension. In addition to the secure log on we can provide through our client portal, a client app is also available. You can see how your SIPP is doing online at any time, and prompt any changes you may feel are necessary.
Contact us today to discuss how our SIPP may benefit you.