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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.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.
iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with IG Markets Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by IG Markets Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by IG Markets Limited or any of its affiliates.
