| | | Why use Sipps Pensions
Self Invested Pension Plans have the same tax advantages of normal pension plans. In simple terms, this allows an investor to benefit from generous tax relief provided from the government on their contribtuions. In simple terms, this means that a tax payer will receive a boost on their contribution depending on their tax rate. A basic rate UK tax payer investing £800 a year would get a further £200 paid in by the governemnt into a SIPP of their choice. A higher rate tax payer, using the same contribution would get a £533.33. In effect this means that a basic rate tax payer gets an automatic 25% return on their contribution whereas a higher rate tax payer gets an immediate return of 66.67% return. Even in the most dramatically poor financial markets this represents a huge benefit for UK tax payers. As SIPPs allow investment in a wide range of available options, it is an excellent tax efficient way to maximize growth. Qrops pensions are a great if you live or want to retire overseas and may be more suitable as a retirement investment vehicle. |
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