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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 company-sponsored pensions. They offer tax-benefits with the UK Government giving a 20% basic tax relief.

Ordinarily, the amount you can personally contribute into your SIPP each tax year is £40,000; 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, after reading the Key Features Document, please contact us at  enquiries@scmdirect.com

Hartley Pension

SCM Direct has employed Hartley Pensions to be our SIPP administrator. It is their job to act on behalf of SCM Direct in relation to the day-to-day administration, such as processing your application, making returns to HMRC and providing information to you regarding your SIPP.

More information can be found in our SIPP Terms and Conditions here.

SIPP Fee

There is no initial fee.

The maximum annual charge is £50+VAT.

The ongoing fee is 0.1%+VAT subject to a minimum annual charge of £15+VAT.

There are no additional charges for transfers in and the fee for transfers out will not exceed the previous year’s fee.

An additional fee of £125 +VAT applies to any SIPP that is in drawdown.

For other work, not relating to the SCM Direct investment portfolio held within an SIPP wrapper, such as work relating to commercial property, divorce & death, for example, are available on request and will be quoted to you directly by our SIPP administrator, before any work is carried out.

Our 100% transparent SCM Direct investment fees can be viewed on our latest factsheets – here

What happens if I am in capped drawdown

If you started taking monies from your pension prior to the April 2015 pension freedoms, your pension is designated as being in ‘capped drawdown’. This will mean that you are allowed to take income from your pension up to a certain limit each year.

You are entitled to keep your pension in capped drawdown, or if you wish to have more freedom, you can convert to a flexi-access drawdown arrangement meaning that there would be no capped income limit.

You will need to consider implications such as the Money Purchase Annual Allowance and a different charging structure.

How do I open an SCM SIPP

To open an SCM SIPP, you first must:

  • Read the Hartley Pensions Limited Terms and Conditions, the SCM Direct Terms and Conditions and the Key Features Document
  • Complete the online application, found here
  • And either transfer an eligible existing pension or make your first contribution into  your SIPP.

If you have any questions, please email us at enquiries@scmdirect.com

How Do I Transfer

SCM Direct only takes cash transfers into our SIPP tax wrapper.

There is an online application process to create the SCM SIPP wrapper.  Once you have successfully opened an SCM Direct account, the account information will be sent to your current SIPP provider for transfer into your new SCM SIPP account.

Once funds have been transferred, they will be invested, normally, the first business day of the following week.

You can start transferring your SIPP today here. 

Start your SIPP

The application should take around 10 minutes to complete and if you get interrupted you can return later and pick up where you left off.

Start today
Transfer your SIPP

You can transfer your current SIPP to SCM Direct here. Simply follow the steps and include the details of your current SIPP manager

Transfer today

Frequently Asked Questions

Can I see all the holdings in my portfolio online (PC/tablet/smartphone)?

Yes. Using your existing log in your holdings are displayed under the ‘Portfolio Valuation’ heading.

Are there any documents I will need to complete offline?

This will vary from person to person. If you are resident and bank in the UK it may not be necessary to send any further documentation. However you may be asked to provide further evidence of your identity or bank details.

 
Any investors choosing a USD$ Portfolio will be required to complete a W8 – the W8 form is provided by the Internal Revenue Service (IRS) to allow non-US persons to receive a reduced rate of taxation on any US-sourced income (including dividends, interest etc.) received from businesses registered or incorporated within the US.

 
There may also be other paperwork as a result of the FATCA requirements (Foreign Account Tax Compliance ACT).

Does SCM Direct give any advice?

No. If you need any advice regarding the suitability of the various portfolios or any other advice specific to yourself and your personal financial needs, you need to seek advice from an Independent Financial Adviser.

 
We can answer general questions regarding the various investments within the portfolios but we cannot under any circumstances recommend the suitability of our portfolios.

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