What is a Self Invested Personal Pension (SIPP)?

A SIPP is a type of personal pension that gives you a greater degree of control over the management of your pension and more choice over where you can invest your money. It is also one of the most tax efficient ways to save for your retirement.

Whether you wish to make your own investment decisions or appoint a professional to manage them on your behalf, a Taylor Patterson SIPP can be tailored to your particular requirements.

Am I eligible for membership to the Taylor Patterson SIPP?

The plan is ideally suited to professional partners, and other self-employed businessmen, non-shareholding directors and other high earning employees or to those approaching retirement wishing to consolidate their existing pensions into one single flexible plan.

You may be eligible to make tax relievable pension contributions or transfer the value of benefits in existing pension arrangements to a Taylor Patterson SIPP in your name.

How Much Can I Contribute?

Members of SIPPs and SSAS can contribute up to 100% of their UK earnings up to the Annual Allowance of £225,000 for 2007/08 and qualify for tax relief. Contributions by SSAS members are deducted by the employer from the member's remuneration and paid over gross with the employer's contribution. Member contributions to SIPPs are paid net of basic rate tax which will be reclaimed through the SIPP.

Can my employer make contributions to The Taylor Patterson SIPP or SSAS?

Yes, employer contributions are paid gross and may qualify for corporation tax relief. However the total your employer's and your contributions should not exceed the Annual Allowance, currently £225,000 for tax year 2007/2008. If the Annual Allowance is exceeded, the excess will be taxed at 40% payable by you.

Where can my pension invest?

Both The Taylor Patterson SIPP and SSAS offer you access to a wide choice of investments including investment ordinary stocks and shares in quoted companies, managed funds, unit trusts and other collectives and, subject to certain conditions, AIM shares.

Who are the Trustees of the Taylor Patterson SIPP & SSAS?

You will be appointed as a Trustee alongside Taylor Patterson Trustees Limited. Taylor Patterson Trustees Limited is the Professional Trustee of both arrangements. Taylor Patterson Associates Limited manages the arrangements and provides guidance on HMRC regulation and practice concerning the operation and administration of the schemes.

Can I transfer or sell commercial property that I already own into my pension arrangement?

This may be possible providing the property transaction takes place at arm's length at open market value. It is also possible to transfer other assets such as unit trusts or shares that you already personally own without the need to sell them. Technically, this is known as an "in-specie" contribution and you may receive tax relief on the value transferred as if it was a contribution.