SIPP Contributions and Allowances
SIPP Contributions and Allowances
There are no limitations on the number or type of pension plans you can contribute to. So, for example you may have a SIPP 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 general terms, you are a 'Relevant UK Individual' if you are a UK resident or your earnings are subject to UK income tax.
The annual allowance
From 6th April 2006 an annual allowance applies to all contributions that you or any third party (including an employer) makes. This will be £235,000 in the tax year 2008/2009. Contributions above annual allowance subject to an annual allowance charge. The annual allowance rises each year.
Lifetime allowance
The lifetime allowance is the maximum amount of pension savings that can benefit from tax relief. It applies to the total pension savings from all of an individual's registered pension schemes. The lifetime allowance will be set at £1.65 million for the tax year 2008/2009, rising in stages to £1.8 million by 2010/2011.
Known rises are as follows:
| Tax Year | Lifetime Allowance |
|---|---|
| 2007 / 2008 | £1.6 million |
| 2008 / 2009 | £1.65 million |
| 2009 / 2010 | £1.75 million |
| 2010 / 2011 | £1.8 million |
| After 2010/11 the lifetime allowance may rise by order of the Treasury. | |
| Tax Year | Annual Allowance |
|---|---|
| 2007 / 2008 | £225,000 |
| 2008 / 2009 | £235,000 |
| 2009 / 2010 | £245,000 |
| 2010 / 2011 | £255,000 |
| After 2010/11 the annual allowance may rise by order of the Treasury. | |
SIPP - How to open an account and find out more
For more information |
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Call our Investor Centre on
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Tell us a convenient time to call you
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To help with your application we have also produced a SIPP application help guide which is available to download. |
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To apply now, get a |
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Download the SIPP Application Form |
Request an information pack by post
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Before making an application, please make sure you have read the SIPP Terms of Service. |
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