What is a SIPP?
SIPP stands for self-invested personal pension, a type of pension available to UK residents that grants you greater freedom when investing.
Remember your capital is at risk.
For any contributions you make, the government will top it up with tax relief at 20%. So if you pay £8,000 into a SIPP, you’ll have £10,000 to invest with
Higher-rate tax payers can claim an extra 20% back in your self-assessment tax return. This money will be sent to you as a rebate
This is also the case for top-rate tax payers, who can claim an extra 25% back as a rebate
Any investments you make in your SIPP will grow free from capital gains or income tax1
You can invest everything you earn in a tax year into your SIPP – up to a maximum ‘annual allowance’ of £40,000 – without incurring a tax charge2
You may be able to carry forward unused allowances from previous tax years. Please consult your financial advisor for more information
With other types of employee or personal pension, you’ll typically choose between a set number of funds offered by your provider. With a SIPP, you can choose exactly what you want to trade from a wide range of investments. This usually includes (but isn’t limited to):