SIPP (Self Invested Personal Pension)
SIPP Frequently Asked Questions
How much can I invest/contribute?
If you are employed or self-employed, you can put up to 100% of your earnings (up to £235,000 per annum) in any one tax year minus any other pension contributions in the same year. If you are retired or not earning money, you can invest up to £3,600 per year.
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 at your highest rate of tax, 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, rising in stages to £1.8 million by 2010/2011. Contributions above annual allowance subject to an annual allowance charge. The annual allowance rises each year. Known rises are as follows:
SIPP Benefits
- Your own personal retirement strategy.
- An ideal shelter for bonuses and lump sums.
- Make your admin easier by moving your other pensions into one SIPP.
- Full range of investment options; UK & international equities, bonds & gilts, investment trusts, unit trusts, OEICs, REITS and Exchange Traded Funds.
- Easy access to your plan online or by phone.
- No initial set up fee - so you save £80!
- Access to normal trading facilities and extensive company research.
- Multi currency facility, hold cash in 4 major global currencies (GBP, USD, CAD & EURO).
| Tax Year | Annual Allowance |
|---|---|
| 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. | |
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.
| Tax Year | Lifetime Allowance |
|---|---|
| 2008 / 2009 | £1.65 million |
| 2009 / 2010 | £1.75 million |
| 2010 / 2011 | £1.8 million |
| After 2010/11 the annual allowance may rise by order of the Treasury. | |
How do I make contributions?
Contributions can be made regularly or in one off lump sums by sending a cheque or setting up a standing order to go Capita SIP Services, 141 Castle Street, Salisbury, Wiltshire SP1 3TB. You can telephone Capita SIP Services on 01722 437 707.
Please note that in order to receive appropriate tax relief all contributions to your account must be made through Capita SIP Service and payments should not be sent to TD Waterhouse.
How do I gain tax relief?
Contributions made to personal pension plans receive tax relief at your highest marginal rate. Contributions are paid net of basic rate tax so to pay in £100 you need only contribute £78. If you are a higher rate taxpayer, additional relief of a further 18% is reclaimed from HMRC via self assessment in the normal way, making an effective net cost of £60 based on the above example.
What are my retirement choices?
SIPPs normally let you take benefits from the of 50 (55 from 6th April 2010). You have a number of options as to how and when you take your benefits. View full details on our retirement options page.
Can I transfer another pension into my TD Waterhouse SIPP?
Most types of pensions can be transferred into a SIPP. You should take professional advise on whether this is suitable for you.
Can I invest in residential property?
No, you can however, invest in property funds and REITs.
Can I open a child SIPP with TD Waterhouse?
No, we don't offer a child SIPP at present.
Can I withdraw my money?
It is not possible to make withdrawals until the age of 50 (55 after April 2010).
Can I make additional contributions to my TD Waterhouse SIPP?
Yes, just send a cheque to Capita SIP Services, 141 Castle Street, Salisbury, Wiltshire SP1 3TB marked clearly with your name and account number.
Can my employer contribute?
Yes, your employer can contribute to your SIPP.
Can I hold a SIPP with TD Waterhouse as well as other pension plans?
Yes.
When can I access my pension?
You can access your pension anytime between the ages of 50 and 75, although this will move to age 55 by 2010.
Do I have to purchase an annuity at age 75?
No. You can draw an income, subject to certain requirements and suitability, through an Alternatively Secured Pension. However, this could be subject to change.
Who provides the TD Waterhouse SIPP?
The TD Waterhouse SIPP is provided by TD Waterhouse and Capita SIP Services (a division of Capita Life & Pensions Regulated Services Limited). Capita SIP Services is a leading specialist pensions administrator and it is responsible for the administration of your SIPP, acting as a Trustee for the plan. TD Waterhouse provides you with the safe custody and trading facilities.
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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