Financial Adviser Nottingham – SIPPs

Opening remarks from Credencis:

( financial adviser Nottingham )

SIPPs (Self Invested Personal Pension) have a considerable number of investment features that altogether and somewhat individually project an attractive pension scheme.

SIPP overview from Financial Adviser Nottingham

The information below provide a single sentence overview of what SIPPs are, how they can be entered into and the distinct advantages that are prevalent through this type of pension investment scheme.

Self Invested Personal Pension

Very popular for self employed individuals that want to manage their own pension fund assets.

What is a SIPP?

A personal pension wrapper (plan) that offers more freedom of choice than conventional personal pensions.

Benefits of a commercial SIPP

Small business owners can buy / invest in commercial premises through their own pension funds.

SIPP Transfers

SIPPs will essentially accept most types of pension (more details below on this page)

SIPP Investments

Thousands of funds to choose from run by high performing managers, you have increased control of moving your money from different investment institutions.

Further Information Relating to SIPPs – Financial Adviser Nottingham

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Self Invested Personal Pension

The inland revenue will allow direct investment UK and overseas quoted securities in addition to commercial property.

Most SIPPs start with a significant pension transfer from an existing occupational pension scheme or personal pension.

The main advantage of SIPPs to some individual investors or partnerships is the ability to purchase their own commercial property that will then be let back to the individual or partnership.

Credencis – Financial Adviser Nottingham

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What is a SIPP

Investors can choose their own investments or appoint an investment manager to oversee the portfolio on their behalf.

The investor has to appoint a trustee to preside over the operation. The scheme individual can effectively run the pension fund on their own.

SIPPs can accomodate investments including shares, bonds, cash, commercial property, hedge funds and private equity.

Benefits of a Commercial SIPP

Their are tax advantages by way of no capital gains tax to pay when using the fund to buy a commercial property.

If you own a business and decide to use the property assets as part of your retirement planning, you would pay rent directly into your own pension fund rather than a third party.

Should you sell a business property to your SIPP, you will avoid tax liabilities including any future gain on the property when it is sold.

SIPP Transfers

Before transferring to a SIPP it is important to check whether the benefits, such as your tax-free cash entitlement, are comparable with those offered by your existing pension.

Many SIPP providers will now permit you to set up a lump sum transfer contribution from another pension for as little as £5,000, and while most traditional pensions limit investment choice to a short list of funds, normally run by the pension company’s own fund managers, a SIPP enables you to follow a more diverse investment approach.

You are eligible to contribute as much as you earn to pensions including a SIPP (effectively capped at £40,000 each tax year). For instance if you earn £40,000 a year you can contribute up to £50,000 gross (£40,000 net) into all your pension plans combined in the 2015/16 tax year.

SIPP Investmens

You can typically choose from thousands of funds run by top managers as well as pick individual shares, bonds, gilts, unit trusts, investment trusts, exchange traded funds, cash and commercial property (but not private property). Also, you have more control over moving your money to another investment institution, rather than being tied if a fund under-performs.

Once invested in your pension the funds grow free of UK capital gains tax and income tax (tax deducted from dividends cannot be reclaimed).

Credencis – Financial Adviser Nottingham

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You Can Invest In

  • Cash and Deposit accounts (in any currency providing they are with a UK deposit taker)
  • Insurances company funds
  • UK Gilts
  • UK Shares (including shares listed on the Alternative Investment Market)
  • US and European Shares (stocks and shares quoted on a Recognised Stock Exchange)
  • Unquoted shares
  • Bonds
  • Permanent Interest Bearing Shares
  • Commercial property
  • Ground rents in respect of commercial property
  • Unit trusts
  • Open ended investment companies (OEIC)
  • Investment trusts
  • Traded endowment policies
  • Warrants
  • Futures and Options
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