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Tax and SIPPs

SIPPs share the significant tax benefits common to other private pensions

Open your SIPP
  • Gain tax relief with a SIPP

    Once you have a private pension, you are eligible for 20% tax relief

  • How does it work?

    To accumulate £100 in your pension pot, you pay in £80 and the government will pay £20 in tax relief

What tax benefits can you expect from a SIPP?

SIPPs share the significant tax benefits common to other private pensions; of course, HM Revenue & Customs can make changes but at present, here’s what you can expect as a UK tax payer:

  • For most of the UK, everyone starts by paying the basic tax rate of 20% (rates vary in Scotland).
  • Once you have a private pension, you are also eligible for 20% tax relief. So, to accumulate £100 in your pension pot, you pay in £80 and the government will pay £20 in tax relief.
  • For people who also pay the higher rate, you’ll usually be able to claim back even more with your tax return.

Tax and SIPPs

  • Example

    Basic rate

    If you are paying the basic rate and have £10,000 to invest in your SIPP, the government tax relief of 20% means it will rise by £2,500, so you end up with £12,500 in your SIPP.

  • Example

    Higher rate

    If you are a taxpayer on a 40% tax-rate and have £10,000 to invest, the government will still provide 20% tax-relief, adding £2,500.

    Then, you can claim back an additional 20% via your Self-Assessment tax return, which would take the total tax relief up to £5,000, so you will have personally contributed £10,000 to have £15,000 in your SIPP.

  • WHY EQI?

    The EQi SIPP

    Enjoy more control and access to a wider range of investment options with an EQi SIPP

  • EQi explains

    Drawdown

    Learn about the different methods of drawdown

  • EQi explains

    Three reasons to consider a SIPP

    Learn more about the tax benefits, personal control and range of investment options

  • EQi explains

    SIPP FAQs

    Learn more about SIPPs in our FAQs section