Taxation

A SIPP is a tax efficient product which receives a number of tax benefits including:

• Regular or single contributions made may receive basic rate tax relief, which will be added back into your SIPP
• If you are a higher-rate tax payer the additional tax relief will be obtained via your self-assessment tax return
• Employers contributions are paid gross, and your employer will obtain corporation tax relief on the payments
• Your funds will grow predominately free of Income and Capital Gains Tax
• In the event of your death following crystallisation of your pension, or after age 75 in all cases, the residual fund may be payable to your beneficiaries in a lump sum, subject to an overall tax charge of 55%.
• The Standard Lifetime Allowance, introduced on the 6th April 2006, is the maximum fund an individual can hold across all pension plans before being taxed.  The SLA is currently set at £1,800,000 and will be reviewed in April 2012.  Any fund exceeding the SLA will be subject to a tax charge of 55% on the excess.