SIPP Information

The changes to pension rules on 6 April 2006, 'A-Day', heralded a radical overhaul of pensions legislation. We present here some of the major changes.

You now have increased flexibility both in terms of how much you can contribute to your SIPP, how it can be invested and how benefits are paid. For example:

You can make contributions of up to 100% of your earnings in each tax year and get full tax relief. You can even transfer assets such as shares to your SIPP in lieu of a cash contribution and still get tax relief.
Your investment options include commercial property, CFDs, collective investments, listed and unlisted equities, and futures and options. Your SIPP can borrow up to 50% of the fund value for any purpose, including financing new investments.
On your death prior to retirement your entire fund can be used to provide benefits for your family. On retirement you can draw 25% of your fund as a tax-free lump sum and the remainder provides you with a pension.
Your SIPP can be structured as a Family Pension Fund so that on your death beyond age 75 the remaining fund can pass onto your children to form a pension fund in their own names.

This information is provided by Origen. Their investment advisors can advise on the implications of the new rules, and they are one of the top ten providers of self-administered pension funds in the UK.

To receive independent advice as to the suitability of a SIPP for you and to set up an appropriate contract, please visit www.origenfs.co.uk, or call Claire Court or Gary Bradley on 020 7405 8535. For specific information about SIPPs, visit the Specialist Pensions page in their Private Client area.

Origen is a trading name of Origen Investment Services Limited which is authorised and regulated by the Financial Services Authority.