SIPP - Self Invested Personal Pension
The Modular iSIPP
For an introduction to our Modular iSIPP, you can watch our video. To find out more detail, please visit the Modular iSIPP page.
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What is a SIPP?
A Self-Invested Personal Pension, or SIPP, is a personal pension plan that offers greater control and flexibility over where your pension money is invested.
In traditional pension schemes, the investment choice is normally limited to funds run by the pension company, or managed for you within a pooled fund. A SIPP allows you and your financial adviser to take advantage of much wider investment flexibility, so you can take complete control of your retirement wealth planning.
A SIPP is a HM Revenue & Customs registered pension scheme, so benefits from the normal tax relief available to pensions. Basic rate tax relief can be claimed on contributions into a SIPP and this can then be added to the fund. To invest £100, it will only cost a basic rate taxpayer £80. If you pay higher rate tax, you can claim back the remainder through your tax return.
Other key benefits of a SIPP
Tax - SIPPs are set up under trust, separating pension funds from other assets for inheritance tax and capital gains tax purposes.
Contributions - If you are a UK resident, you will be able to receive tax relief on contributions up to 100% of your earnings or up to £3,600 if you have no earnings. There is no limit on contributions but if your contributions in respect of a tax year exceed the annual allowance (£40,000 for 2014/15 tax year), you may be subject to a personal tax charge called the annual allowance charge.
Commercial property - One of the great advantages of a SIPP is that it allows direct investment in commercial property, allowing any business premises and the rental income to be put into retirement savings.
Consolidation - Modern working culture often means individuals accumulate more than one pension. A SIPP is a great way of getting past pension funds in one place so they can be managed in a more efficient and considered way.
Taking income drawdown – Drawdown pension can normally be taken from the age of 55, subject to certain exceptions. SIPPs provide a great deal of flexibility on taking benefits, including flexible and capped drawdown.
For more information, you can read more about SIPPs by reading the Modular iSIPP Member Guide or download our Member Drawdown factsheet.
Why have a SIPP with James Hay Partnership?
James Hay Partnership was the first SIPP provider in the UK when we launched our first SIPP in 1996. Today over 47,000* clients trust us to look after more than £15 billion* worth of pension and investment savings.
*As at March 2014
Is a SIPP right for me?
A SIPP can be held and invested in by any UK resident (or anyone who has been in the last five years) who is over the age of 18.
SIPPs are ideal if you are comfortable making your own investment decisions as the additional investment flexibility comes with a greater responsibility to monitor and manage your investments. A SIPP is therefore suitable for someone who feels comfortable with making investment decisions, or someone who is taking financial advice.
The tax efficiency of this product is subject to your individual circumstances and may be subject to change.