Self-Invested Personal Pension (SIPP)

SIPPs are one of the most tax-efficient ways to save for retirement. A SIPP is a self-managed pension which means you can buy, sell and hold a range of your own investments such as shares, funds, Exchange Traded Funds (ETFs) and much more, and you can benefit from between 20% to 45% tax relief on all money paid in. Our SIPP is provided by AJ Bell.

Please remember that the value of investments and the income from them can fall as well as rise and you may get back less than you invest. If you’re not sure about investing, seek independent advice.

Why should I invest in a SIPP?

Any contributions to your SIPP will automatically receive 20% in basic rate tax relief, and if you don’t pay tax, HM Revenue & Customs (HMRC) will still contribute to your SIPP - for example if you contributed £2,880 in a tax year, HMRC will pay £720 into your SIPP.

You can also invest up to £40,000 per year (or more if you haven’t used your annual allowance from the last 3 tax years).

At the age of 55 you can start taking an income from your SIPP, including a 25% tax-free lump sum.

Higher rate tax payer?

You can claim up to 25% (If you're a Scottish or Welsh tax payer this could differ) on your tax return if you are a higher/additional rate tax payer.

Table showing tax relief information for higher rate tax payers
Your tax bracket	Your contribution			Total tax relief
Your tax bracket Non-earner (max contribution)	Your contribution £2,880	£720	£0	Total tax relief £720
Your tax bracket Basic rate (20%)	Your contribution £6,000	£1,500	£0	Total tax relief £1,500
Your tax bracket Higher rate (40%)	Your contribution £6,000	£1,500	£1,500	Total tax relief £3,000
Your tax bracket *Additional rate (45%)**	Your contribution £6,000	£1,500	£1,875	Total tax relief £3,375

*46% in Scotland

Tax treatment depends on personal circumstances and may be subject to change.

Interest rate

Our SIPP interest rate follows the Bank of England Base Rate. This means you will receive 0.1% interest (gross) on any money held in the account above £1.

[Correct as of 19/03/2020]

What do I pay?


Quarterly account charge (SIPP value of £50,000 or less)	£22.50
Quarterly account charge (SIPP value of more than £50,000)	£45
Real-time online trades	£12.50 dealing commission per trade
Scheduled regular investments	£2.00 dealing commission per trade

See our full charges

Helpful SIPP information

Just like any pension, a SIPP cannot be accessed until you are 55. If you have any more questions, more information can be found on SIPPs explained.

Guidance on your options is also available from the Money and Pensions Service, a free and impartial government service. It is not intended to be a substitute for financial advice.

The value of an investment can fall as well as rise, and you may get back less than you invest. If you are not sure about investing, seek independent advice. SIPPs are a pension product and you will not be able to withdraw your funds until you reach the age of 55.

SIPP | Investing | Bank of Scotland

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.