SIPP - Self Invested Personal Pension
Self Invested Personal Pensions (SIPPs) offer flexibility and a wider choice of investments for your pension fund.
We have our own administration systems that allow us to provide bespoke pension solutions, such as our own Self Invested Personal Pension (SIPP).
Our SIPP allows you to benefit from our Discretionary Investment Management service. This incorporates leading-edge asset allocation technology and the skills and experience of our investment management team.
For clients invested with this service, there are no SIPP product charges.
Our SIPP proposition provides access to all investment funds and an extensive range of other investment options.
Clients invested in our Discretionary Investment Management service are also able to access valuations, portfolio breakdowns and other information online, so, if they wish, they can keep a regular track of their holdings. This information about SIPP investments can be combined with any other investments we manage which may be held outside the SIPP such as ISAs and bonds, to provide a comprehensive portfolio overview.
We manage both Protected Rights and Non Protected Rights assets for our clients.
What is a SIPP?
A SIPP is a self-invested personal pension. As the name suggests, it is a type of personal pension and is therefore an approved pension scheme under UK law. Consequently it comes under the same rules as other personal pensions with regard to tax reief on contributions and tax efficiency with investment returns as well as the restrictions on when and how the investments can be accessed.
Like any other approved scheme it can be used to invest a wide range of investments that are approved by HM Revenue and Customs (HMRC). The difference between a SIPP and some other personal pensions is in the 'self invested' element of the title. Most personal pension providers will restrict the types of investment that can be held within their schemes. This is often done to reduce costs and therefore charges. SIPPs offer their investors a wider range of investment choices and depending on the particular scheme this can range from individual shares through to commercial property.
Because of the wider choice of investments SIPPs can be more costly to run and therefore the charges for using them are likely to be higher. Anyone using a SIPP should ensure that they are using the more diverse investments otherwise they could be paying for something that they are not using.
The Towry Discretionary Investment Management service invests in assets which can go down as well as up in value. This means that the value of your portfolio can fluctuate and, therefore, you could get back less than you invest.
The way in which tax charges (or tax relief, if appropriate) are applied depends on individual circumstances and may be subject to change.