At Cornhill Broking, we know that planning for the future is important for our clients. We provide SIPPs for clients who wish to control the investments that make-up their pension plan, and future income. SIPPs are financial products which can deliver greater choice and flexibility than a traditional pension. The annual cost of a SIPP is transparent, unlike traditional pension funds where the charges can be difficult to interpret and understand and, furthermore, hugely reduce the value of a clients’ pension. With a SIPP clients have full knowledge of the costs attributed to investing in their pensions. Furthermore, SIPPs are ‘tax wrappers’ which enable clients to benefit from one of the most efficient ways of saving for retirement. Accumulated savings are free from capital gains tax and income tax liability.
Whilst our clients will be able to take advantage of making their own investment decisions, they will still have access to their own personal stockbroker. Our brokers will assist in finding the opportunities to satisfy each client’s personal investment criteria, prepare for the future, and ensure that their financial future is secure.
Our FAQ section on our SIPPS may help answer your question, but feel free to contact us should you require more information.
Although all investments are permitted in a SIPP, certain investments are not subject to tax charges. These include:
- Investment flexibility: A SIPP is a flexible type of pension that gives you the freedom to choose where to invest your pension savings.
- Tax-effective saving: As an incentive to save for your retirement, the Government will give you tax relief on the contributions you make to your pension. The current basic rate tax relief system works by making every £80 you pay into your pension up to £100. This applies to the personal payments you make to all pension plans you have up to £2,880 (which totals £3,600 with tax relief) or 100% of your UK taxable earnings, whichever is greater.
- Pension consolidation: As your career progresses, you may build up a number of pension pots in different job roles that are difficult to keep track of and might not be performing as well as you’d like. A SIPP is an ideal way to manage all of your pensions in one place and take control of their potential for growth.
- Flexible retirement options: A SIPP offers you a range of options at retirement, including the opportunity for your pension to remain invested while you are drawing an income.
- The annual allowance limit allows anything up to £50,000 (£40,000 from 2014/15) to be placed into a SIPP in a year, without it being taxed.
- Across a lifetime an individual can place £1.5m (£1.25m from 2014/15) into a SIPP without it being subject to tax.
- There is no UK capital gains tax on the sale of investments held in your pension fund. Furthermore, there is currently no additional UK tax applied to investment income once it is received by the pension fund.
- All eligible contributions into a SIPP will receive tax relief of 45%.
All investments involve a degree of risk. The value of your investment can go down as well as up and you may not get back the money you invested. Cornhill focuses primarily on the provision of investments and services which are regarded as high risk. Investments in smaller companies and investments that are not readily realisable are considered high risk investments and you may have difficulty in selling them at a reasonable price and in some circumstances it may be difficult to sell at any price. Investments in high risk products should only be considered as suitable for high risk investors or as part of an overall balanced portfolio of investments. If you have any doubts about the suitability of an investment you should seek professional advice. Click for more info.