SIPP tax benefits
Pensions, such as a SIPP, are one of the most tax-efficient ways of saving for retirement. Pension contributions receive up to 45% tax relief. How much will depend on your circumstances.
Pension tax relief calculator
Use our pension tax relief calculator to find out how much tax relief you could receive on your pension contribution.
Additional tax benefits
- No capital gains tax or further income tax
Investments in a pension can grow free of UK capital gains tax and further income tax.
- Up to 25% tax-free lump sum when you retire
Any time from age 55 (57 from 2028), you can normally take up to 25% of your SIPP as a tax-free lump sum and receive a taxable income from the remainder if you wish. From 6 April 2015 you will be able to take as much of your pension as you wish either as income or a lump sum, with the first 25% usually tax free and the rest taxed as income.
- Pass on your pension tax free to your heirs
Any money left in your pension when you die can usually be passed to your heirs free of inheritance tax. Any withdrawals they then make will be tax free if you died before you were 75. If you die when 75 or older any withdrawals will be taxed as their income or potentially taxed at 45% if taken as single lump sum.
Employer contributions: great tax savings for both employers and employees
The pension and tax rules are subject to change by the government. Tax reliefs and state benefits referred to are those currently applying. Their value depends on your individual circumstances.
96% of clients would recommend the Vantage SIPP to friends and family*
A SIPP is a type of pension for people happy to make their own investment decisions. Investments go down in value as well as up so you could get back less than you invest. The rules mentioned are those currently applying and could change in the future. You can normally only access the money from age 55. Tax reliefs depend on your circumstances. This website is not personal advice, if you are unsure an investment is right for you, please seek advice.