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SIPP

Self Invested Personal Pensions

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Self-Invested Personal Pension’s (SIPP) are specifically designed for people who reside outside the UK but have contributed to a UK pension/s and wish to manage their own fund and investments.

Essentially, a SIPP is a pension “wrapper” that holds investments until you retire and start to draw a retirement income. It’s a type of personal pension and works in a similar way to a standard personal pension, with the main difference being that you have more flexibility over the investments chosen.

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With standard personal pension schemes, your investments are managed within the pooled fund that has been chosen. But with a SIPP, you’re given the freedom to choose and manage their own investments from a wide range of different asset types. You may also choose to pay an authorized Investment Manager to make decisions on the holder’s behalf.

A SIPP offers the flexibility to pay contributions at whatever level you wish, within the limits prescribed by Her Majesty Revenue & Customs (HMRC) and there’s no contractual minimum contribution.

You should also seek advice from one of our qualified and regulated Financial Advisers, as it may be that due to your residency or domicile, you’re subject to different tax provisions.

If you’re in any doubt about the tax treatment of the International SIPP or its benefits, please seek advice from a qualified tax expert.

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How does a SIPP work?

1

You may make regular payments (contributions) or transfers from an existing pension into your SIPP. This pot of money grows during your working life and is then used in retirement to provide an income.
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There is no requirement to make regular contributions but UK tax relief may be available on some contributions.
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An employer may also contribute to an employee’s SIPP.
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Contributions are invested with the objective of achieving capital growth over the years before you retire. There is no requirement to invest in any particular type of investment.
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Upon retirement, you will have several different options on how to take benefits.
  • “Self-invested” means that you choose where to invest the monies held within the SIPP.
  • “Personal “signifies that the SIPP belongs solely to you. You will usually appoint a suitably qualified and regulated financial or investment adviser to assist you in making these decisions.
  • As this is a pension, benefits may only be taken from the SIPP in retirement (usually from age 55) and there are a range of lifetime benefits available.
  • For ‘relevant UK individuals’, tax relief on contributions to the SIPP is available.
Deciding on the options available on retirement is complex and requires a good deal of financial planning. If you’re considering a transfer to a SIPP we strongly recommended that you get suitable independent advice before deciding.
The

Aim of the International SIPP

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Specifically designed for non-UK tax residents who wish to plan for their retirement.
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The SIPP offers a pension commencement lump sum on retirement of 25%, from age 55, and then a choice of lifetime benefits thereafter.
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Members are not compelled to take benefits from the SIPP but have Flexi-Access Drawdown which allows you to:
  • Take up to 25% Pension Commencement Lump Sum.
  • Take a regular or irregular income of any amount – and change this whenever the you wish.
  • Take an ad hoc cash withdrawal at any time.
  • Keep the remainder of the fund invested, with the potential to keep on growing.
  • Buy an annuity in the future should annuity rates improve or you qualify for an enhanced annuity on attractive terms.

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