SIPP pension information for UK investors

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Background

What is a SIPP

A SIPP allows you to have full control of the investments in your pension. SIPP stands for Self Invested Private Pension. Others may call this pension a SIP - Self Invested Pension.

SIPPs benefit from transparent management costs and the flexibility for you to manage how your pension is invested.

Why are SIPPs so popular

Many people have been disillusioned with the pension industry as many existing pension schemes have often produced very poor returns. Therefore, Individuals are eager to try and bolster their pension fund.

SiPPs are becoming ever more popular, as many people believe they can achieve greater performance of their pension money by controlling the pension themselves.

	Do you want to ask a question? Then use our Sipps and Pension Simplification, A Day message board. Here's some recent posts!

What are the general rules

You can contribute the same amount of cash as a private pension every year.
25% of the pension pot may be taken between the age of 50 and 75, tax free.
The remaining part of the pension must be used to provide an income using a annuity or income withdrawal scheme Your income is subject to income tax.
There is no Capital Gains Tax to pay on any profits you make on your SIPP investments nor is there any tax to pay on any investment income received by your SIPP.

What can you invest in using a SIPP

Commercial and Business property
Individual shares
Gilts
Unit trusts
OEICS
Cash

Can you invest in residential property using a SIPP

You cannot at the present time, though the law will change in April 2006 and there will be a provision to do this. This may help to fuel an upsurge in the property market, as many investors may opt to buying a property and renting it out.

Can you invest in commercial property using a SIPP

You can invest in this type of property. Generally you can buy a commercial property and lease it out to another company, or you can lease it to your own business.

Can I transfer my existing pensions into a SIPP

Yes you can transfer all existing pensions including stakeholder and company pensions into the SIPP pension.

How can I apply for a SIPP

There are a number of companies who offer SIPP management services. Shop around for the best deals and management charges.

Please use the sub sections links on the left or the content links to find out more about SIPP pension information for UK investors.

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