SIPP Zone - The Tax Advantages of a SIPP

The tax advantages of a SIPP
are the same as a normal
pension, namely:

• You can get tax relief on up to 25% of your pension pot when you retire (which means you will never have paid tax on this portion of your pot).
• If you're a higher-rate taxpayer now you'll get tax relief at that rate when you pay into your pension. However, chances are you'll be a basic rate taxpayer when you retire, so you'll pay less tax overall.
• The first part of your pension will not be taxed, because of the tax-free personal allowance.
• Pensions stop those with little willpower from raiding their funds, which could be disastrous.

For more information about SIPPs, please click one of the links to the left
or alternatively, click here to contact us with any queries.