SIPPS

A SIPP is a means by which you can gain greater control over the investment of your pension money which, typically, might have previously been invested in insurance companies’ pension funds. All too often these funds under-performed.

SIPP’s offer far greater flexibility than ordinary personal pensions due to the range of investment options which are available. These include;

• Stocks and shares
• Unit trusts
• Investments trusts
• Managed funds, and
• Commercial Property

In addition to the above, up to 40% tax relief can be reclaimed on contributions

On the basis that we believe they are only suitable for investors with a pension fund exceeding £100,000, SIPPs will be most attractive to those who either can build up a fund of this size quickly or those with existing funds which are available for transfer. As well as receiving up to 40% income tax relief on contributions, individuals are also entitled to take a tax free lump sum of up to 25% of their accumulated fund at their chosen retirement age. This can be age 55 and upwards.

 All of the time money is invested within the fund it remains tax free being subject to neither income tax, capital gains tax, or inheritance tax. Allowing for the fact that you do not have to cash a policy to purchase a pension via an annuity, but simply draw from the fund whilst leaving it invested (subject to certain limits), this is particularly attractive.

Effectively your money can remain in a tax free environment for many years during which you have full investment control.

 

 

Speak to us

If you would like to speak to one of our team about your specific requirements please call us on 01624 651977 or email us