Self Invested Personal Pensions (SIPPs)
Your SIPP in a Click!
- Manage your own retirement portfolio in our SIPP
- Low administration, dealing and investment costs
- Pull all your investments together in one place within the UK's largest investment community
- We give equal profile to shares, ETFs, investment trusts and funds plus a wide range of packaged solutions
- Your SIPP account forms part of our single Investment Account, which also includes a share trading, fund and ISA facility
Take Control of Your Pension
Our SIPP account offers competitive pricing with a low £10 charge, and the added advantage of a 100% rebate of all income and commission we receive, on every fund.
What is a SIPP?
A SIPP (Self Invested Personal Pension) is a tax-efficient pensions account where you can hold investments in shares, funds and cash (thus sheltering them from tax), with the added advantage of tax relief on your contributions.
You can pool existing investments, including any company pensions you may have collected through your career, and aggregate them in a single place. You can then become your own pension manager, choosing what and when to buy and sell.
Our SIPP Account benefits:
- No set-up fees
- Administration fee of just £120+VAT per annum
- 100% rebate of all income and commission we receive, on every fund
- Base rate interest paid on all cash holdings
- Wide investment choice from UK and international shares to over 2,800 funds
- £120 in commission-free trades when your transfer by the end of July (see terms below).
- Buy shares and funds from just £1.50
SIPP Account - How does it work?
Contribute to your pension: Pay £8,000 into your SIPP and the Inland Revenue will automatically rebate £2,000 back to your account.
If you’re a higher rate tax-payer and your top rate of tax is 40% you will be able to claim back a further £2,000 via self-assessment, turning a £6,000 contribution into a £10,000 pension fund. And if you are an additional rate taxpayer and pay tax at a rate of 50% you can claim £3,000 back via self assessment, turning a £5,000 contribution into a £10,000 pension fund without risking a penny - a cool 100% return.
SIPP tax relief
All eligible pension contributions automatically qualify for basic-rate tax relief:
- If you have UK earnings, then you can contribute your entire income into your SIPP (subject to a 2012/2013 cap of £50,000). You will qualify for basic-rate tax relief automatically and for higher-rate tax relief on that portion of your income that attracts a higher tax rate. Please note: Higher earners may be subject to limits on the higher-rate tax relief available.
- If you do not have any UK earnings you can still pay a net contribution of £2,880 a year into your SIPP and receive basic-rate tax relief of £720, which will bring your overall investment up to £3,600. You can also set up a SIPP for a child or spouse and pay the contributions on their behalf up to these limits.
The amount of tax relief you will be entitled to will depend on your individual circumstances and most importantly, whether you are a higher-rate taxpayer or not.
Tax band explanations
An individual with no other allowances would start to pay higher rate tax over an income of £42,475 (calculated as your personal allowance plus the point at which the higher-rate tax band applies). Income received over this figure would be eligible for higher-rate tax relief if you decided to invest in a pension.
|£ per year||2012/13|
|Personal allowance (under 65s)*||£8,105|
|Basic rate: 20%||£0 - £34,370|
|Higher rate: 40%||£34,371 - £150,000|
|Additional rate: 50%||Over £150,001|
|*Your personal allowance is reduced if your income is above £100,000|
Annual allowance for contributions?
The annual allowance is £50,000 for 2012/2013.
The annual allowance is currently expected to stay at £50,000 until 2015/2016, but this is not guaranteed.
All your pension contributions, up to the annual allowance, qualify for basic-rate tax relief. Any contribution is net of basic rate tax: if you were to invest £800, an additional £200 would be collected automatically from the Inland Revenue on your behalf, added to your account, and be available to invest 6 to 11 weeks later. Higher-rate taxpayers making contributions on their own behalf can reclaim a further tax relief through their self-assessment forms.
Please note: Higher earners may be subject to limits on higher-rate tax relief available.
Opening an account
To open a SIPP account, first you need to apply for our Investment account. Once your account is up and running (applying only takes a few minutes) you can add a SIPP account online.
In order to apply for a Investment account please follow the steps below:
- Click on Open an Account
- Complete the application process.
- As long as we can verify your information online, your account should be up and running straight away.
Once your account is open and fully active you will be able to add a SIPP account. To do this, got to the Account Admin section of your account and select the Add Account option.
Your SIPP account will be confirmed within 72 hours by our SIPP team.
Below are the forms you will need to manage your SIPP account:
Direct Debit mandate form
Expressions of wish form
Expressions of wish – post drawdown (please use this form if you are over the age of 75, or if you are currently in drawdown)
See the key features of an Interactive Investor SIPP, together with its benefits and risks.
SIPP terms and conditions
Please be aware that tax laws may change. A SIPP may not suit your individual circumstances and you may want to consult a financial adviser. Please be aware of the risks involved.
*Terms and conditions of transfer offer
- A minimum transfer amount of £3,000 is required to qualify for this offer.
- To qualify for this offer, we will need to receive your transfer forms by 31 July 2013.
- The £120 commission credit will be added to your account in four, quarterly, instalments with the first credit of £30 being applied at the start of the next quarterly credit period (our quarterly credit periods start on 3 January, 3 April, 3 July and 3 October).
- All quarterly credit, including the transfer-offer commission credit, must be used up in the quarter it is added to your account. Any remaining commission credit will be removed from your account at the end of the quarter.
- The commission credit is applied to your overall account and can be redeemed against any trading fees you incur within your investment, ISA or SIPP account held with us (trading fees are charged at £10 for real-time UK and international trades and £1.50 for regular investments).
- The commission credit is in addition to the £20 quarterly credit which is applied to your account together with your £20 quarterly account fee.
- Your account must remain open for twelve months following the transfer to receive the full £120 in commission credit. Accounts which are closed during this time, will lose any outstanding commission credit.
- Interactive Investor reserves the right to amend or withdraw this offer at any time.
Open an account
Please be aware of the risks involved. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. Past performance is no guarantee of future performance. Tax treatment depends on your individual circumstances and may be subject to change. If in any doubt, please seek advice.
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0845 200 3637
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