What is a Self-Invested Personal Pension?
A Rowanmoor Pensions Self-Invested Personal Pension is a type of personal pension that gives you control of your pension fund, allowing you to make decisions on how your funds are invested within a range of investment opportunities.
You can make payments into your SIPP in a tax-efficient way to provide benefits in your retirement.
A Rowanmoor Pensions SIPP is designed to provide you with:
- a tax-efficient way to build up a pension fund before you reach age 75;
- control to invest in assets of your choice;
- flexibility to choose when and how you take your benefits;
- a retirement income for life;
- options for providing benefits for your dependants following your death.
We aim to give you the most comprehensive range of investment choice available under current legislation. This means we will permit any asset provided:
- it does not give rise to an unauthorised payment tax charge;
- we can obtain satisfactory title to the asset;
- ownership of the asset will not give rise to an unacceptable liability or risk, for example a legal, practical or environmental risk.
A Rowanmoor Pensions Self-Invested Personal Pension offers you considerable tax advantages;
- if you are a UK resident, your SIPP will receive basic rate income tax relief on your personal contributions up to £3,600 (gross) or 100% of your earnings, if greater, as long as they do not exceed the annual allowance applying to the tax year in which you make the contribution and you are below the age of 75;
- if you are a higher rate income tax payer, you can reclaim higher rate income tax relief on your contributions from your tax office, via your annual self-assessment tax return;
- you will not be subject to income tax on contributions paid by your employer;
- contributions made by your employer qualify for tax relief in the year they are made, provided they are wholly and exclusively for the purposes of the employer's trade;
- your investments (other than UK dividend income) grow free from UK capital gains tax and income tax;
- you can take a pension commencement lump sum between age 55 and age 75, free of tax;
- should you die before taking benefits, any lump sum death benefit is normally free from all taxes including inheritance tax.
Each member has a separate plan within the Rowanmoor Pensions SIPP, or if they wish to have the opportunity of taking benefits as a scheme pension, a separately registered SIPP will be established on their behalf. A Rowanmoor Pensions SIPP can receive contributions, and transfers of existing benefits including protected rights.
This information applies to the Rowanmoor Pensions SIPP