Self-Invested Personal Pension (SIPP)

What is a SIPP?

A self invested personal pension (SIPP) is a vehicle that lets you save for your retirement in a tax-efficient way. It is a personal pension wrapper that can hold a wide range of permitted assets both directly and through collectives. It offers you a higher level of flexibility and control over investment choices, which is useful if you use it. However, should you only want a more limited investment choice, you may be able to access this more cost-effectively without the SIPP wrapper cost.

Dentons provides both a full asset SIPP, enabling you to invest in a wide range of assets including commercial property through the full asset SIPP, and a more straight forward SIPP, our single portfolio SIPP, where you can only invest in a single portfolio. Both Plans deliver the flexibility to move between each Plan at a reduced cost to take advantage of a change in asset requirements/strategy.

Our SIPPs are Registered Pension Schemes for the purposes of Section 150(2) Finance Act 2004.

Key features include:

• Efficient and award-winning administration
• Flexibility on the level and choice of investments
• Inheritance tax planning possibilities
• Penalty free transfers
• Simple transparent fee structure
• The ability to select your own fund managers
• Total flexibility on the frequency and payment of contributions
• Early 'retirement' irrespective of whether you remain at work, subject to a minimum age of 55 (rising to 57 from April 2028)
• Staggered or phased retirement
• Capped/Flexi-access drawdown - no need to purchase an annuity.

Tax benefits.

Under current legislation, self invested personal pensions enjoy considerable tax benefits:

• Tax relief on permitted personal contributions at your highest marginal rate of income tax, subject to certain limits
• Investments are generally exempt from UK Income Tax and Capital Gains Tax (CGT)
• Employer’s contributions may qualify for full tax relief as a business expense
• Benefits on death will normally be free from Inheritance Tax. From 6 April 2027, effectively all pension funds death benefits (including SIPPs), will be brought within scope of Inheritance Tax under current Government proposals.
• Benefits on death before age 75 could be free of any tax.

Why choose Dentons Pensions?

At Dentons Pensions, we understand that everyone's financial journey is unique. That's why our SIPPs are tailored to accommodate your specific needs and aspirations. Here's why you should choose us:

History: Dentons has 45 years’ experience and has gained a reputation as a professional, knowledgeable and efficient self invested personal pension administrator.

Diverse investment options: Our SIPPs open up a world of investment opportunities, from traditional assets to alternative investments, giving you the freedom to diversify your portfolio. Dentons has 45 years’ experience within the self invested pensions industry and our Pension Consultants average over 28 years’ experience in financial services, dealing with simple and complex investments, including commercial property purchase (all investments are subject to Dentons' individual acceptance following its due diligence).

Professional administration: Dentons has a clear focus on the delivery of a personalised and expert administration service to their clients. Dentons' Pension Consultants each head up a team of Pension Administrators. Each team deals with a specific set of clients and provides a single point of contact for all client transactions. Dentons' servicing structure and training programme are designed to ensure that Dentons’ Pension Administrators are comfortable answering any adviser and client queries across every aspect of servicing.

Award winning service: Winning externally accredited awards including the Financial Adviser Service Awards (FASA) in consecutive years since 2015 is a testament to our dedicated, knowledgeable and experienced Pension Consultants and administrative staff and to our range of self invested pension products. Our level of client services and pension products continue to lead the way, backed by impressive customer assessment.

What can a SIPP invest in?

A principal feature of our SIPPs is the freedom for the client to choose their investments from a wide selection, unlike a personal pension where you can usually only invest in a range of funds offered by an insurance company. With Dentons Pensions, you will be able to take direct control over your investment strategy, and depending on the Plan selected, could allow you to invest directly in a range of assets such as stocks and shares, commercial property, gold bullion, unlisted shares, collective funds and bank/building society deposit accounts. Any uninvested funds will be held in the SIPP's default bank account".

Contributing to a pension

You, your employer or a third party other than your employer may contribute to your self invested personal pension. This can be on a regular basis, as one-off contributions, or a combination of both. There is no specific requirement to contribute and you can pay at intervals that suit your personal circumstances.

You will normally be eligible for tax relief on the total amount of contributions you and/or a third party (other than an employer) pay in a tax year to your self invested personal pension and any other registered pension schemes you may have, that do not exceed the greater of:

• £3,600 gross and
• 100% of your relevant UK earnings that are changeable to income tax for the tax year in question.

Dentons SIPP Fees

Our fees provide clients with a clear administration charging structure. The standard annual administration for our full asset SIPP is charged at £714 plus VAT enabling clients to access a full range of investment options. For clients who choose to only invest funds in a single portfolio with an investment manager or platform, the standard annual administration is charged at £492 plus VAT.

More questions about SIPP?

Our frequently asked questions (FAQs) section will provide you with more information about SIPPs, to help you decide whether this is the most suitable retirement vehicle for you.

Disclaimer: A SIPP is not suitable for every investor. Other types of pensions may be more appropriate. The value of investments made within a Plan can fall as well as rise and you may end up with a fund at retirement that's worth less than you invested. You can normally only access your pension fund from age 55 (age 57 from April 2028). Please note: the tax treatment of a SIPP depends on the individual circumstances of each investor and may be subject to change in the future.

Before making any decision regarding the suitability of using a SIPP or transferring any existing pension plan(s) into a SIPP we recommend that you seek the advice of an authorised and regulated financial adviser. If you do not have a financial adviser, please view one of the below:

• dentonswealth.co.uk
• societyoflaterlifeadvisers.co.uk
• thepfs.org/yourmoney/find-an-adviser/
• unbiased.co.uk
• vouchedfor.co.uk