SIPP
With SIPP accounts our clients receive all the benefits of our traditional stockbroking account with additional tax advantages.
A Self-Invested Personal Pension (SIPP) can be both a tax-efficient and low cost way of saving for retirement.
A SIPP account enables you to control the process of planning your retirement because of the freedom you have to choose how you invest and manage your savings over time.
A SIPP is best explained as a 'wrapper' to help you shelter your savings and investments from tax.
Key Features of SIPPs
Puts you in control
You can determine what you invest in and manage how you invest your assets.
Tax relief on contributions
Receive up to 45% tax relief on contributions into your SIPP.
Annual allowance
The maximum amount being £40k you can contribute into your SIPP in a tax year. Contributions above the annual allowance are taxed as income, unless you are able to carry forward unused annual allowance from the last three tax years.
Lifetime allowance
You can hold a total value of £1m in your SIPP without incurring an additional tax charge. This is measured the sooner of when you take benefits, reach age 75 or die.
Tax benefits within the wrapper
SIPP plans are free from capital gains tax (CGT) and income tax.
24-hour access
Unrestricted view only access to your account 24 hours 7 days a week.
Fast execution
The multi-award winning online platform provides live prices and you can open and close positions at the click of a mouse.
Inheritance tax benefits
SIPP funds can be passed onto your spouse free from inheritance tax.
Capital lockup and withdrawal
You cannot withdraw capital from your SIPP until age 55, although you can take up to a 25% capital lump sum from that date.
Key Features of ISAs
Puts you in control
You can determine what you invest in and manage how you invest your assets.
Annual allowance
The maximum amount being £15,240 you can contribute into your ISA in a tax year 2016/2017. The end of the UK tax year 5th April is the deadline to use your annual allowance for that tax year. Any remaining allowance cannot be carried over to the following tax year.
Tax benefits within the wrapper
ISA accounts are free from both capital gains tax (CGT) and income tax. Any interest or capital withdrawn from your ISA is also free from tax.
Capital withdrawal
You have the flexibility to withdraw capital at any time from your ISA. However, any new deposits into your ISA will come out of your current annual allowance.
Inheritance tax benefits
ISA funds can be passed onto your spouse free from inheritance tax.
24-hour access
Unrestricted view only access to your account 24 hours 7 days a week.
Fast execution
The multi-award winning online platform provides live prices and you can open and close positions at the click of a mouse.
Bed and ISA
This is a method of transferring shares from your standard stockbroking account into an ISA to protect your profits from capital gains tax. Because HMRC rules prohibit the transfer of shares directly into an ISA, shares must first be sold, the cash transferred into your ISA, and the stock re-purchased, which could itself incur tax liabilities.
Cash ISAs & Equity ISAs
A cash ISA is essentially a tax-free savings account whilst an Equity ISA allows you to invest in shares, funds and bonds.