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SIPP Providers UK



A SIPP is a type of Pension which provides you a tax efficient way in which you can invest funds to build a regular income and a tax free lump sum amount when you reach an age above 50.
SIPP is different from traditional pension plans as it provides More control and flexibility to make any type of investments including cash, equities (shares), bonds & gilts, commercial property or collective investments in some specialist residential property funds, you wish within your pension plan.
It also provides the freedom to transfer the any assets held within a personal pension or an occupational pension or an annuity pension plan, into a SIPP. It offers the best planning and tax reduction opportunities like: Income Tax: Tax relief is available on your own contributions to your SIPP at the highest tax rate you pay; e.g. if you are a higher rate tax payer you will receive £40 tax relief for every £100 you contribute; if you are a lower rate tax payer you will receive £22 for every £100 invested.
Its major benefit is that 25% of your pension fund can be taken as a tax-free lump sum while income tax is paid on the remaining pension income you receive from your fund. The amount you have invested in the SIPP fund will grow free of income tax (excepting dividends from UK shares).
Capital Gains Tax: No CGT is payable on any gains made within your SIPP. Corporation Tax: Companies may reduce the amount of Corporation Tax and N.I. by contributing to a SIPP on behalf of their employees and these are not taxed for the amounts contributed. Inheritance Tax (IHT):
If you were to die before retiring there is no IHT to be paid on the assets distributed from the SIPP in the form of a lump sum within 2 years of the date of death and furthermore most people will be able to pass on the benefits to their remaining spouse without any IHT liability.

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The general information in this publication is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purpose of avoiding tax penalties.

 

 

 

 

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