It allows you access to a wide range of funds and managers all within one area. This option is popular with investors who are more interested in their investments being actively managed by a professional investment adviser and perhaps accessing commercial property within the arrangement.
Please have a look at our SIPP Frequently Asked Questions below:
What can I invest into a SIPP?
You will receive tax relief on yearly contributions up to:
£3,600 gross if you are a Relevant UK Individual* (even if you have no earnings) or
100% of your UK earnings, whichever is greater.
You can invest in a wide range of assets that you wouldn’t normally be able to invest into under a normal pension:
- Cash deposits
- Property
- UK Equities (including AIM and OFEX)
- International Equities
- Gilts and Bonds
- Investment Trusts, Unit Trusts, ICVCs & Exchange Traded Funds
- Warrants and Covered Warrants
*You are considered a relevant UK individual if you are UK resident or your earnings are subject to UK income tax.
Why Consider a SIPP?
If you want your money invested actively as opposed to being held in insurance company funds within a personal pension or stakeholder pension.
Alternatively you may wish to manage your own property inside the SIPP (Self Invested Personal Pension). Don’t be fooled by some offerings from pension providers giving you links to external funds. Many of them simply provide a weak link to the fund but the performance can be very misleading.
A SIPP allows for the assets inside it to grow free of tax (apart from the tax credit on dividends). If you held a property outside a SIPP you could be liable for Capital Gains tax on any gain.
Remember, however, that any gain inside the SIPP is held there and is not as accessible as if you held it outside the SIPP.
Who can take out a SIPP?
Almost anyone can take out a SIPP. There are no limitations on the number or type of pension plans you can contribute to. So, for example you may have a SIPP (Self Invested Personal Pension) even if you are in an occupational scheme.
You will receive tax relief on yearly contributions up to:
£3,600 gross if you are a Relevant UK Individual* (even if you have no earnings) or 100% of your UK earnings, whichever is greater.
* In simple terms, you are a ‘Relevant UK Individual’ if you are a UK resident or your earnings are subject to UK income tax.
What can you put into a SIPP?
There are many options but here is a short list:
- Unit Trusts, OEICs, investment trusts, ICVCs & Exchange Traded Funds
- Commercial property
- Stocks and shares listed or dealt in on an Inland Revenue recognised stock exchange including AIM but not OFEX
- Deposit interests
- Futures and options
- International Equities
- Gilts and Bonds
- Warrants and Covered Warrants
What can you NOT put into a SIPP?
- Unquoted / Private Company Shares
- Residential property / Chattels
- Loanbacks
- Commodities (e.g. gold bullion)
- Offshore Insurance Company Products
Is a SIPP Expensive?
No, but be careful of some SIPPs which are. You should consider a SIPP for its added flexibility of fund choice. If your financial adviser is not an investment specialist and doesn’t actively manage your portfolio it may well be that you won’t benefit under a SIPP as you will pay slightly more but not benefit from the active management.
A SIPP could be slightly more expensive than a personal pension.
How can I access Worldwide’s award winning investment expertise in my SIPP?
Worldwide is the UK’s Investment adviser of the year. We competed against the top firms in the U.K. to invest capital for a year and stormed the awards winning two of the three sections we entered and coming second in the overall growth category returning 37.2% for the year, 0.5% behind the eventual winner. Our worst fund selected in this sector returned just over 24.3%.
Investment Adviser – an FT publication commented that to ‘pick the best funds from thousands of options clearly showed the fund manager’s ability to be the very best at what they do’.
You can access our management by appointing us as the adviser to your SIPP.
It is unlikely it will cost you any more than you are paying as your financial adviser will currently be paid from your SIPP and we will simply take that over. Moreover our SIPP may actually be cheaper due to the financial distribution strength that we have as an organisation.
SIPP in a wrap
Under the wrap (see wrap) your SIPP (Self Invested Personal Pension) can be valued at a touch of a button. We are able to see your SIPP’s value at a glance or view your SIPP alongside all your existing holdings.
Wrap enables online trading rather than having to go through the process of unnecessary paperwork.
