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.
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.
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.
|
Your tax bracket |
Your contribution |
Government top-up (20%)Paid into SIPP account |
Further tax reliefClaimed through annual tax return |
Total tax relief |
|---|---|---|---|---|
Your tax bracketNon-earner (max contribution)
|
Your contribution£2,880 |
Government top-up (20%)Paid into SIPP account£720 |
Further tax reliefClaimed through annual tax return£0 |
Total tax relief£720 |
Your tax bracketBasic rate (20%)
|
Your contribution£6,000 |
Government top-up (20%)Paid into SIPP account£1,500 |
Further tax reliefClaimed through annual tax return£0 |
Total tax relief£1,500 |
Your tax bracketHigher rate (40%)
|
Your contribution£6,000 |
Government top-up (20%)Paid into SIPP account£1,500 |
Further tax reliefClaimed through annual tax return£1,500 |
Total tax relief£3,000 |
Your tax bracketAdditional rate (45%*)
|
Your contribution£6,000 |
Government top-up (20%)Paid into SIPP account£1,500 |
Further tax reliefClaimed through annual tax return£1,875 |
Total tax relief£3,375 |
*46% in Scotland
Tax treatment depends on personal circumstances and may be subject to change.
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]
|
|
|
|---|---|
|
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 (£9.50 per online trade from 1st April 2021) |
|
Scheduled regular investments |
£2.00 dealing commission per trade |
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.
Before you apply for an account please make sure you’ve completed our checklist:
We are making some changes to our SIPP Service Terms and Conditions. Please see our new SIPP Service Terms and Conditions (PDF) (effective from 1st April)
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.