Self Invested Personal Pension (SIPP)
A Self Invested Personal Pension (SIPP) is a HM Revenue & Customs registered
pension scheme that offers greater choice and flexibility over your pension. It
is a pension that allows you and your adviser to make decisions about where you
invest your pension savings. So, you and your financial adviser take complete control
of your retirement planning.
The benefits of a SIPP
- Tax - SIPPs are set up as trusts, separating pension funds from
other assets for inheritance tax and capital gains tax purposes.
- Tax relief - Basic rate tax relief can be claimed on contributions
into your SIPP and this can then be added to your fund to ensure you benefit from
the Government incentive for saving into a pension. To invest £100, it will
only cost a basic rate taxpayer £80.
- Contributions - Those in employment can contribute 100% of their
annual earnings before tax up to a limit of £50,000. Non-earners can contribute
up to £3,600 (including the tax relief) per tax year and still get basic rate
- Commercial property - One of the great advantages of SIPPs is that
they allow a wide range of investment types including direct investment in commercial
property, allowing you to put any business premises and rental income from this
source into your 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 considered way.
- Taking benefits - SIPPs provide a great deal of flexibility on
taking benefits from the pension accrued and your taking of benefits does not have
to be linked to your retirement.
If you are thinking of opening a SIPP, as you might expect, not all SIPPs are the
same. In the past, sophisticated investors with larger portfolios normally required
a SIPP with a more comprehensive choice of investments but with a higher annual
With the launch of the flexible and cost effective Modular iSIPP, you can have a
SIPP that can grow from a low cost SIPP to a full SIPP as and when you require extra
investment choice. You only pay for what you use, and only while you use it.
Watch our Modular iSIPP video
The Modular iSIPP offers the option of a low cost SIPP. The core iSIPP allows you
to choose from a wide range of investment options including:
- Access up to 1,985 discounted collective funds via the James Hay Investment Centre
- A panel of investment managers
- A panel of cash deposit providers
- Exclusive online trader terminal - powered by Selftrade - giving access to any major
stock exchange in Europe and North America as well as access to exchange traded
funds, gilts, corporate bonds, iShares and a range of derivatives.
The core iSIPP is available for an annual charge of just £180. In addition,
the Modular iSIPP can grow into a full SIPP as and when you require extra investment
choice. When you need to, you can simply add additional modules:
- Whole of Market module for investments outside the James Hay Investment
Centre and investment managers / stockbrokers not on our panel
- Commercial Property module for investments in commercial land and
- Specialist Investments module for more complex investments, such
as unquoted shares and unregulated collective investment schemes.
You only pay for these additional modules when they are switched on and we only
charge for the modules in use at the anniversary of your Modular iSIPP.
Apply online for a Modular iSIPP today. To apply for the Modular iSIPP, you must
register for access to the James Hay Online service. If you are already registered
with James Hay Online, you can
login and apply. To register, go to
and complete the Online Registration process. You will receive an email from James
Hay Partnership in order to verify the email address entered. Once verified, you
can log in to James Hay Online and apply.
Points to consider
A SIPP may not be suitable for all investors and if you are in any doubt you should
consult your financial adviser. James Hay Partnership is not authorised to give
financial advice. If you do not already have a financial adviser, information can
be obtained from http://www.unbiased.co.uk/ .
For more information on the risks associated with SIPPs, please read our guide;
SIPPs & Wraps: assessing
Tax Risk Warning
Current pensions legislation and HMRC practice could change in the future. This
may affect the pension benefits you receive from the plan. In addition, your individual
circumstances will impact the tax treatment of your pension and may also be subject
to change in the future.
Capital at Risk Warning
The value of your SIPP will be determined by the valuation of all the investments
held within it. Depending on the type of investments that you choose to hold within
your SIPP, some of these may not return the amount you initially invested especially
where their value can go down as well as up. This could impact the level of benefits
you can take on your retirement.
You can also find useful and impartial information about pension options and retirement
provisions on the Money Advice Service website,
formerly the UK Consumer Financial Education Body (CFEB).