Self-invested personal pensions (SIPPs) are not a new concept, although you might think otherwise from the press attention they have recently attracted. SIPPs first appeared in March 1989, less than a year after the launch of personal pensions. Until the pension tax changes introduced in April 2006, the use of SIPPs was largely confined to pension fund withdrawal plans and phased retirement. These two areas remain important application for SIPPs, but the role of SIPPs has now widened considerably.
The change to pension tax rules put SIPPs into the spotlight. In part, this was because SIPP contribution limits were effectively brought into line with what had been the much higher levels applicable to occupational pensions. The more flexible benefits available under the 2006 tax regime have also favoured the use of the SIPP structure.
The origins of small self-administered schemes (SSASs) pre-date SIPPs. Although the two are now governed by the same tax rules, there remain technical differences which can be exploited.Last Updated
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Self-invested personal pensions and small self-administered schemes
Self-invested personal pensions and small self-administered schemes
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Self-invested personal pensions and small self-administered schemes
01: Introduction
The FSA does not regulate tax advice. Tax rules are subject to change.
