SIPP Zone - How much money can I invest in a SIPP?

There are limits to the amount
you can put in a SIPP and still
get tax relief

• Earners - You can contribute 100% of your annual earnings before tax up to a limit of £215,000 for the 2006/07 tax year. This will increase by £10,000 a year until 2010/11. The maximum amount that can be invested within a SIPP is £1.5 million. If the fund value exceeds £1.5 million then the excess will be taxed at 55%
• Non-earners - You can contribute up to £3,600 per tax year and still get basic-rate tax relief. So, non-workers can pay in £2,808 per tax year, to which the taxman will add £792.
  On top of this, your employer can put money in as part of your pay, and you can transfer in existing pensions or other assets (e.g. shares from a company share scheme). Yet for pension transfers, be very careful of complex exit penalties from your existing scheme.

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