What is a SIPP?
A SIPP, or Self Invested Personal Pension, is a flexible way to save for your retirement. Unlike other personal and company pensions which generally leave investment decisions up to fund managers, a SIPP allows you to be personally responsible for where to invest your money.
A Halifax SIPP is essentially a share dealing account with a ‘tax wrapper’ for your pension savings. You can transfer in a lump sum or regular amounts and trade in any of the investments below, whilst receiving the tax benefits of a traditional personal pension. Trading with Halifax Share Dealing costs just £11.95 online (plus stamp duty) or you can set-up a regular investment plan and pay just £2.00 commission per trade. The portfolio of investments that you build up within your SIPP will hopefully grow over time to provide you with an income for your retirement.
What are the current tax benefits of a SIPP?
You pay no Capital Gains Tax on pension investments, receive tax relief on your own contributions at the highest tax rate you pay and you can take 25% of your pension fund as a tax-free lump sum from the age of 55.
What can I invest in a SIPP?
You can invest in the following:
- UK shares on the FTSE and Alternative Investment Market (AIM)
- International trading on six other global markets
- Unit Trusts and Open Ended Investment Companies (OEICs)
- Exchange Traded Funds
- Gilts
- Investment Trusts
- Corporate fixed and convertible bonds
- Preference shares
- Warrants
More detail about each of these is available in Investment Options.
Visit our Research Centre for full details of which stocks are eligible for your SIPP.
