SIPPs from Standard Life by MS Wealth Management

What is a SIPP?

A SIPP is a self-invested/administered (or member-directed) personal pension scheme designed for individuals, which allows clients to hold investments within a personalised trust, providing tax-effecient savings on retirement. As a form of personal-pension schemes, SIPPS offer individuals control of their assets and the option to choose and manage their own investments. Contributions, including assets and transfers from pre-existing pension plans are allowed, enabling the member to consolidate all pension savings in one scheme. There are variations aimed at family members and corporate or group SIPPS for company employees. SIPPS are registered with HMRC and SIPP providers are authorised and regulated by the FSA.

What are the differences between the types of SIPPS available?

At the very bottom end of the scale there are the single asset class products, which allow access to a range of investments, all within the same asset class, for example a fund platform, permitting a range of unit trusts and OEICs, or a stockbroker account allowing access to a share-dealing service. 

There is a hybrid product, usually offered by insurers, consisting of their core range of insured funds, at a headline fee, with a secondary or tertiary range of investment choices, with additional fees.

At the top level is the full or genuine SIPP allowing all investments permitted by the HMRC, usually for a flat fee. These investments could include shares, quoted and unquoted, and commercial property.

Both the adviser and the client need to differentiate between the SIPP products on the market. SIPP's can be a tax efficient way of purchasing a commercial property, with many tax advantages and tax benefits when the property is eventually sold.

If you would like more information about how these work, please contact us.