What is a SIPP?
A Self-invested Personal Pension (SIPP) is a type of pension introduced in 1989 and was designed for people who wanted an alternative to workplace pensions. They offer tax-benefits with the UK Government giving a 20% basic tax relief with the additional benefit of Inheritance Tax not applying to SIPPs.
For the 2023-2024 tax year, the annual allowance for SIPPs is £60,000. So, whichever is lower between your annual income and £60,000 is the maximum amount you can contribute into your SIPP; but your employer can also contribute into your SIPP.
You can also ‘carry forward’ unused allowances from the previous three years. To understand how this works and the calculations used, please read our SIPP Key Features Document here
If you still have any questions relating to SIPPs, please contact us at enquiries@scmdirect.com
Minimum investment is £10,000
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