SIPPs                 

Self Invested Personal Pension Schemes (SIPPS)

SIPP’s were first launched in 1989 by Nigel Lawson, in order to facilitate greater investment flexibility. They were initially aimed at wealthy clients and business owners at the time of launch, however since Pension Simplification or ‘A-day’ SIPP’s have made a move to the mainstream.

What is a SIPP?

A SIPP is simply an investment ‘wrapper’ with significant tax advantages-contributions attract income tax relief at up to 40% and the investments within the SIPP are virtually free from tax.

For a pure SIPP, the wrapper would normally be provided by a specialist company and the investments then purchased from other providers across the market. The Inland Revenue allows a wide range of investment choice, freeing the SIPP to invest in a wide range of different types of investment (otherwise known as Asset Classes). For example, a summary of the current permissible investments is shown below:

• Stocks and Shares quoted on any recognised exchange
• Unit Trusts, Investment Trusts and Open Ended Investment Companies.
• Deposit accounts.
• Hedge funds.
• Commercial Property.
• Commercial and Residential property funds.
• Government Securities.
• Futures and Options traded through a recognised exchange.
• AIM Companies.
• Traded Endowment plans
• Ground rents.
• Insurance company managed funds.

This presents the investor with a number of potential dilemmas, for example; with such a wide investment choice and so many products on the marketplace- Where is the best place to invest? Which SIPP presents the best value? What are the costs? And most importantly-Is a SIPP suitable for me?

We can help you answer these questions, we provide a full advisory service for planning your retirement which will take account of your circumstances, attitudes and current planning, and providing you with our written recommendation’s to help you achieve your objective.

To discuss if a SIPP is suitable for you, please complete the enquiry form and one of our trained advisors will contact you to discuss further. There are no fees for any initial consultation which may be by email, phone or meeting if required. You may incur costs should you decide to buy a particular product and these will be fully explained to you by the advisor before you finally decided to proceed.

SIPP’s are unlikely to be suitable for the following investors/savers:

1. Those with less than £75,000 in an existing or proposed pension fund.

2. Those who want to purchase residential property or holiday homes both in the UK or Overseas.