Self Invested Personal Pension Plans (SIPPs) allow you to invest towards your pension in one of the most tax-efficient manners and like all pensions, a SIPP can offer up to 45% tax relief on the contributions. Furthermore, investment growth within the funds is currently free from all UK Income Tax and Capital Gains Taxes.
A Self-Invested Personal Pension Plan (SIPP) offers a wider range of funds to invest in compared to the traditional pension plans. Investments are allowed into a number of assets and asset classes including commercial property, equities, gilts and unit trusts.
A SIPP provides customers the flexibility to distribute the risk, especially if some of the investments are performing badly. However, SIPPs do tend to have higher costs than a standard pension and active management is essential to help maximise the benefits of the wider Investment choice on offer. Therefore, only clients who are reasonably experienced at actively looking after their investments should contemplate investing into this kind of product.
The value of a SIPP can fall as well as rise. you may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.