SIPPS
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So what is a SIPP ?
A Self-Invested Personal Pension (SIPP) is the name given to a type of UK government-approved personal pension scheme, which allows individuals to have greater control and make their own investment decisions from the full range of investments approved by HM Revenue and Customs (HMRC).
An international SIPP offering will also allow for greater currency flexibility and investment options, as well as the ability to receive transfers from UK registered schemes and Recognised Overseas Pension Schemes (ROPS). However, please note that UK state pension benefits cannot be transferred into either option.
SIPPs are essentially "tax wrappers", allowing tax rebates on contributions in exchange for limits on accessibility. The HMRC rules allow for a greater range of investments to be held than personal pension schemes, notably equities and property. Rules for contributions, benefit withdrawal etc. are the same as for other personal pension schemes. Another subset of this type of pension is the stakeholder pension scheme.
Both the standard and International SIPP options will remain in the UK and as such will fall under UK regulations and the potential implications of any future tax and pension law changes.
Currently, an International SIPP can be converted to a ROPS at any point if your circumstances change.
Who is a SIPP designed for ?
Contrary to popular belief amongst expats, a SIPP is available to both UK and non-UK residents (international SIPP). Please note that tax relief will however not be provided at source when you are non-UK resident.
Where other pension schemes may be deemed to be unsuitable, many ExPatriates living overseas can enjoying the benefits of an International SIPP.
How will a SIPP benefit me ?
For expatriates, the international SIPP has several advantages over your existing UK pension plan:
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MAXIMISE THE BENEFITS FOR YOUR BENEFICIARIES
100% of your funds will be passed to your beneficiaries if you die before age 75 (subject to LTA) and a marginal rate of UK income tax will apply to your beneficiary if death occurs after age 75. If you have a defined Benefit or Final Salary pension, your spouse will only receive a reduced benefit and your children will probably receive nothing!
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CONSOLIDATION
Consolidate all your fragmented pensions on one platform for cost effective investment management and pension administration.
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INVESTMENT FLEXIBILITY
Dictate how your pension funds are invested.
Tax-efficient options are available to enable optimal investment growth.
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CAPITALISE ON CURRENT HIGH TRANSFER VALUES
Final Salary and Defined Benefit pensions are currently paying out record multiples and so transfer values are at historic highs. This will enable you to generate a much larger pension in the future.
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HOLD AND INVEST YOUR PENSION FUND IN ANY CURRENCY
Instead of being restricted to GBP in the UK, an international SIPP allows you to hold and invest your funds in any currency – for example, the local currency in your country of residence.
If you you would like to discuss the above, or you may already think that an international SIPP might be for you then please click the button below for a free, confidential, No obligation consultation.