sipp

FAQ

These are only the most common questions. If you need to know anything that we haven’t covered here, don’t worry – just get in touch.

What is a Self Invested Personal Pension?
Am I eligible to open a SIPP?
What tax relief will I receive?
What can I invest in?
What can’t I invest in?
Can I transfer existing assets into my SIPP?
Can I purchase a commercial property I currently own with my SIPP?
Can I transfer my SIPP elsewhere?
When can I retire?
Do I ever have to purchase an annuity with my SIPP?
How do I receive income if I am taking unsecured income?

What is a Self Invested Personal Pension?
A SIPP is a specialised type of personal pension that allows you to prepare for your retirement in a tax-efficient way. It’s also much more flexible than many other kinds of pension – giving you a range of options on how you invest before you retire and how you take your benefits when you do retire. In short, a SIPP is a pension that gives you ultimate control when you’re planning for your future.

Am I eligible to open a SIPP?
If you are under 75 years of age you may join as a member of @sipp provided:-
• you wish to make contributions and/or
• you wish to transfer from another provider and/or
• you have pension credit rights

What tax relief will I receive?
The contributions you make to your plan are net of basic-rate tax. So, when you pay into your SIPP, we’ll reclaim the tax from the HMRC.

And, if you’re a higher-rate taxpayer, you can reclaim the higher-rate tax directly from the HMRC. Although tax relief will be restricted for individuals on high incomes (currently £130,000 or more).

What can I invest in?
SIPPs offer a wide range of investment options, including commercial property.

Find out more about SIPP investment options here.

What can’t I invest in?
It is important to note you can’t invest in:
• Taxable assets such as works of art, fine wines and vintage cars
• Residential property

Can I transfer existing assets into my SIPP?
Yes, you can do this – but only at the trustees’ discretion.

Can I purchase a commercial property I currently own with my SIPP?
Yes. Find out more about property transfers (and purchases) here.

Can I transfer my SIPP elsewhere?
Yes – just as you can transfer your existing pension to an @sipp plan, you can transfer your SIPP at any time. However, if you’re drawing income from your plan, the company you’re transferring to will have to be happy to accept a SIPP in drawdown.

When can I retire?
You can retire at any age between 55 and 77. However, the entitlement to a pension commencement lump sum (tax free cash) must be exercised before attaining age 75.

Do I ever have to purchase an annuity with my SIPP?
No – you don’t have to purchase an annuity. Instead, you can draw benefits directly from the fund (called ‘Unsecured Income’). Find out more here.

However – we always recommend that you seek professional advice before you make a decision on how you take your benefits.

How do I receive income if I am taking unsecured income?
We’ll pay the money straight into your bank account – either monthly, quarterly, half-yearly or annually. This income is paid net of tax, because we’re required to take the tax off at source – so we’ll need details of your tax code. If you’re a member and you want to arrange this – just get in touch.

Further questions and answers are contained in our Key Features document.