SELF INVESTED PERSONAL PENSIONS (SIPP's)

A SIPP is a UK based, HMRC person pension plan that allows individuals greater control and investment flexibility. Being based in the UK, SIPPs must adhere to the investment rules stipulated by the trustee and HMRC.  Individuals have complete flexibility over their retirement income under flexible draw-down rules.

Investments 

SIPPs are the most flexible pensions in the UK for investments. Clients, amongst other assets, can hold ETFs, ETCs, Mutual Funds, Stocks, Bonds & Commercial Property. Often this scheme, as it says in the name, is used by clients wanting to have control over their investments.

Retirement age 

Unless there is a reason to allow early retirement (ill health) than all UK pensions can be taken from the age of 55.

Jurisdiction - United Kingdom

All SIPPs are held in the UK. The UK is one of the most regulated jurisdictions for financial services in the world.  The  UK is a self-governing state, bolstered by its current membership  to the EU. Every pension scheme in the UK is independently regulated by the FCA giving clients protection and peace of mind.

Advantages: large amount of double taxation agreements globally, low cost, flexible investments, high levels of compliance.

Disadvantages: tax on death after age 75, lifetime allowance tax charge on pensions, cannot accept transfers from pre-aday SIPP's.

Why are clients using SIPPs?

• Cost - Typically SIPPs are low in cost
• Consolidation - Moving all UK
• Pensions into one low cost, easy to manage scheme
• Succession Planning - UK pensions are free of tax before 75. Moving them into one scheme where you control the beneficiary 
• Currency Control - Many overseas clients want control of the currency
• Investment Flexibility - Greater choice of investments and more control than curreny scheme