What is a SIPP?

2014 Budget - find out how the changes affect your Halifax Self Invested Personal Pension (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 £12.50 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

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.

AJ Bell Management Limited is the Scheme Administrator of the Halifax Share Dealing SIPP. AJ Bell Management Limited is registered in England No. 3948391. Registered Office: Trafford House, Chester Road, Manchester M32 0RS. Authorised and regulated by the Financial Conduct Authority and on the FCA register under FCA registration number 211468. Sippdeal Trustees Limited is a wholly owned subsidiary of AJ Bell Management Limited, registered in England No. 4050222. Registered Office: Trafford House, Chester Road, Manchester, M32 0RS. Sippdeal Trustees Limited does not conduct any regulated activities, and is, therefore, not regulated.
Dealing and stock broking administration services are provided by 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, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Please remember that the value of an investment and the income from it can go down as well as up and you may get back less than you invested.

We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor.

SIPPs are a pension product and you will not be able to withdraw your funds until you reach the age of 55.

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