Self-Invested Personal Pension
Funding a SIPP
Members and their employers may contribute to the SIPP. Contributions can be made until the member reaches age 75, and will receive tax relief, provided the member satisfies tax status requirements.
Contributions can be made on behalf of a minor by others, including family members.
A Rowanmoor Pensions SIPP can accept the transfer of any existing protected rights or guaranteed minimum pension you have already accrued. If you are already taking benefits from your protected rights fund you should seek advice from your independent financial adviser, before making the transfer. A Rowanmoor Pensions Self-Invested Personal Pension cannot be used to receive any new protected rights contributions, also known as rebates.
MEMBER CONTRIBUTIONS
There is no limit to the amount you may contribute but tax relief will only be granted on contributions up to 100% of your earnings in any tax year, up to the current annual allowance. If you have minimal or no earnings, you may contribute up to £3,600 gross (£2,880 net) in the tax year. If you pay contributions in excess of the annual allowance or 100% of earnings in a tax year, you must declare so on your annual self-assessment tax return to HMRC and inform us.
If you are eligible for UK tax relief you should pay contributions to the SIPP net of basic rate tax. We will reclaim basic rate tax relief your behalf. If you are planning to invest or take benefits, your should bear in mind that it can take up to eleven weeks for reclaimed basic rate tax to be received. Higher rate tax relief should be reclaimed via your annual self-assessment tax return.
EMPLOYER CONTRIBUTIONS
Employer contributions are unlimited and will receive tax relief in the year they are made, provided they are wholly and exclusively for the purposes of the employer’s trade.
If the total of the employer’s contributions plus the member’s personal contributions exceeds the annual allowance then the member will have to pay 40% income tax on the excess. The annual allowance and the 40% income tax charge do not apply in the tax year in which you take your full benefit entitlement from the scheme (known as full crystallisation). We will ensure that any employer contributions are received in the specified time and that members are advised of any non-payments in line with the Pension Regulator’s code of practice.
This information relates to the Rowanmoor Pensions SIPP.