Tax Benefits
Currently the SVS SIPP service is only available to IFAs. If you are an existing client of SVS Securities or you are interested in opening an independent SIPP account, this service is coming soon. Please register your interest here.
No Capital Gains or further Income Tax
Investments in your SVS SIPP can grow without being liable for capital gains tax or income tax.
Up to 25% tax free lump sum when you retire
After the age of 55 you are free to take up to 25% of your SVS SIPP as a tax free lump sum, and a taxable income from the remainder.
No inheritance tax if you die before retiring
If you die before taking any benefits from your pension or before reaching the age of 75, the fund will normally be passed to your elected beneficiary free of inheritance tax.
Government tax relief
Pension contributions can receive up to 50% tax relief. How much you receive will depend on your circumstances.
Standard rate tax payer (20%)
If you are a standard rate tax payer, the government will automatically add an additional 20% of your investment into your SVS SIPP. For instance if you invest £8,000, the government will add an additional £2,000 to this giving you £10,000.
Higher rate tax payer (40%)
If you are a higher rate tax payer, the government will automatically add an additional 20% of your investment into your SVS SIPP. In addition to this you can claim back a further 20% in higher rate tax relief. You are free to do what you want with the tax relief you receive. Some people invest it in their SVS SIPP and receive yet another round of tax relief.
Additional rate taxpayer (50%)
If you are an additional rate tax payer, the government will automatically add an additional 20% of your investment into your SVS SIPP. In addition to this you can claim back a further 30% in higher and additional rate tax relief. You are free to do what you want with the tax relief you receive. Some people invest it in their SVS SIPP and receive yet another round of tax relief.
Non tax payer (0%)
If you do not pay tax, you can still contribute up to £3,600 gross each tax year and receive 20% tax relief. You are free to do what you want with the tax relief you receive.
You must pay sufficient tax at the higher/additional rate to claim the full tax relief via your tax return. Please remember that tax rules can change and the relief you receive will depend upon your circumstances.