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
From age 55, you can usually take up to 25% tax-free cash from your SIPP and a taxable income from the rest. The government has proposed from April 2015 you should be able to take as much of your pension as you wish as income or even as a lump sum, from age 55. This is subject to consultation and the first 25% would be tax free with the remainder subject to income tax.
- No inheritance tax if you die before retiring
If you die before taking benefits from your pension, and before reaching age 75, the fund will normally be passed to your spouse or other elected beneficiary free of inheritance tax.
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.
98.3% 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.