Self Invested Personal Pension (SIPPs)

The SIPP is a flexible pension plan, with tax advantages, that anyone can take out to help them save for their retirement. It is a type of personal pension where the plan holder has the freedom to choose and change the investments within it.  There is a wider investment choice, as the investments are not restricted to insurance company funds. Currently a SIPP can hold investments such as commercial property and land, and stocks and shares.  SIPPs have been around since 1990, but have risen rapidly in popularity since the mid nineties. It is estimated there are now more than 70,000 plans holding over £14bn.

A SIPP is available to any UK resident between 0 – 74 (under age 18 the personal pension must be taken out by a legal guardian).  It must be set up with a recognised provider and professional trustee.  Our Investment Director works closely with the SIPP trustees to select the appropriate investments to achieve maximum growth for our clients.

Benefits

The benefits of a SIPP over other personal pensions are as follows:

Wide investment choice

·        UK Quoted stocks, shares, gilts and debentures
         ·        Shares quoted on the Alternative Investment Market (AIM)
         ·        Stocks and shares traded on a recognised overseas stock exchange
         ·        Authorised unit trusts, investment trusts and OEICS
         ·        Insurance company funds
         ·        Commercial property and land.

(After Pension Simplification in April 2006 it may also be possible to invest in private property)

Tax efficiency

You receive income tax relief on contributions, and can take up to 25% of fund as tax-free cash on retirement.

Funds are free from capital gains tax and generally free from income tax. With less tax paid, more goes towards the growth of your fund.

Flexibility

Regular contributions can be stopped, reduced or increased without incurring extra costs or penalties.

Flexible retirement options

As you approach retirement, the SIPP offers you a number of ways you can use your fund:

·        Purchase an annuity from any provider

·        Remain invested, while taking income. You can take an income from your fund, while leaving it invested with the potential to grow further, tax efficiently. This is called Income Withdrawal

Death benefit

The SIPP will pay out 100% of your fund value on your death.  This will be paid to nominated beneficiaries and benefits are normally paid free from inheritance tax.

We offer a free consultation, of up to half an hour in length, to consider your personal circumstances. Our consultation offer is made without any obligation upon you.