Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

SIPP stands for self-invested personal pension, a type of pension that grants you increased control over where your capital is invested.

SIPP definition

SIPP stands for self-invested personal pension, a type of pension that grants you increased control over where your capital is invested.

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 invest in anything you wish to provided it is permitted by your provider. This typically can include (but isn’t limited to):

  • Stocks and shares listed on a recognised exchange
  • Futures and options
  • UCITS funds, including ETFs and unit trusts
  • Commercial property
  • Gold

For UK residents, the tax benefits of a SIPP are identical to those for other types of pension. That means that any contributions into a SIPP will be ‘topped up’ with 20% tax relief, and that higher rate taxpayers can reclaim a further 20% or 25% in the form of a rebate.

There is an ‘annual allowance’ of 100% of annual earned income for contributions into a SIPP, up to a maximum of £40,000. Please note, though, that individual tax circumstances may differ and tax laws can change.

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