Money In

Your SIPP can be funded through contributions and/or transfers.

Contributions to your SIPP can either be made by you personally or by your employer. If you are a UK resident then those contributions will benefit from tax relief up to certain levels.

There is no minimum level of contribution.

You can also transfer benefits from other registered pension schemes into your SIPP. Following a recent change in legislation, you can now transfer ‘protected rights’ funds (ie funds from contracting out of the State Second Pension), as well as non-protected rights funds into your SIPP.

Personal Contributions

Your own contributions, whether you are an employee or self-employed, are paid net of basic rate income tax.

If you are a UK resident, you will be eligible to have tax relief on the total amount of contributions which do not exceed the higher of:

  • £3,600 gross, and
  • 100% of relevant UK earnings in the tax year they were paid, subject to the Annual Allowance below.

We will reclaim basic rate tax relief from H M Revenue & Customs (HMRC) and add it to your Plan (this usually takes about six weeks). If you are a higher rate tax payer, then you can reclaim the higher rate tax through your personal tax return.

Company Contributions

Your employer can also contribute to your SIPP and may do so whether or not you are making personal contributions. All employer contributions are paid gross. For employer contributions to be treated as an allowable expense against Corporation Tax they must be ‘wholly and exclusively for the purposes of the business’ (subject to the Annual Allowance below).

Transfers In

You can transfer other registered pension schemes that you are a member of into your Plan. We can accept transfers of protected rights as well as non-protected rights into your SIPP.

It is important that you seek independent financial advice when deciding whether to transfer benefits held within a particular registered pension scheme into your SIPP.