We look after your pension needs allowing you to do what you do best.
Self Invested Personal Pensions (SIPPs) have been around since 1989, the more basic personal pensions in their current form were available from 1988. A Self-Invested Personal Pension (SIPP) is a specific type of personal pension which offers customers a wide choice of assets in which to invest, as opposed to just a selection of funds. SIPPs typically allow the customer to take full control of the underlying assets, or to appoint an authorised fund manager to do this on their behalf. The portfolio may include a range of collective investments from different managers, and may include individual share holdings, commercial property and intellectual property.
For those running or employed in a profitable business a Self Invested Personal Pension (SIPP) could be considered for retirement planning. Profits drawn as income by a sole trader for example (or profits left in a limited company, withdrawn as dividends or income) usually incur substantial tax charges and possible National Insurance payments. Investing profits in a pension scheme however, with the associated tax advantages this brings, may seem a better answer. This is particularly appropriate where the scheme member(s) have the ability to control the funds held by the scheme.
A SIPP provides a tax-efficient environment in which profits can be invested to provide significant retirement benefits for individuals or directors. As the fund grows it can work for the individual and still generally be free from creditors should the business fail.
A SIPP gives individuals the opportunity to maximise their pension funds prior to retirement by giving them control over their investments. Unlike other pension schemes, the individuals can invest their pension funds in their own business, for example through share purchase or by purchasing commercial property to lease back to the business.
With good corporate financial planning advice, innovative entrepreneurs can make their pension funds work for their business whilst building up a substantial pension fund to benefit them in retirement.
This information reflects the regulatory and taxation situation as it affects pensions at the time of publication in April 2017 and is provided to the best of our knowledge. It is not a complete representation of the pensions legislator landscape and is for guidance and information purposes only. We cannot be held responsible for any errors, omissions or subsequent legislative changes.
For further information on your pension scheme administered by Morgan Lloyd, or any enquiry, please do not hesitate to call and one of our team members will be happy to helpView more