2007-05-16 03:13:14 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
A Self Invested Personal Pension. Explained via this link.
2007-05-16 03:16:04 · answer #1 · answered by Anonymous · 2⤊ 0⤋
A Self Invested Pension Plan.
It's a bit like a Stocks & Shares ISA, however you can contribute up to 100% of your annual salary per year and the SIPP providers claim back 22% Tax on your contributions !
Example, you contibute £7,800 .. the SIPP provider claims back Tax of £2,200 and your SIPP balance is £10,000 !
== if you paid Tax at 40%, you claim back the other 18% yourself (in your Annual Tax return)
Main drawback is ... it's a Pension Scheme !
So you can't get any money out untill you retire (at age 50 (untill 2012) or 55 after that ..) - but when you retire, you can get 1/4 of the balance as a Tax Free Lump Sum and use the rest to pay you an annual pension.
Check out SIPP Providers (all the Banks are doing them these days) - or visit one of the discussion boards (eg link below)
2007-05-18 00:25:59 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋