Tax charges

For those individuals with either larger pension funds or those planning to make significant pension contributions, careful advance planning with your adviser is essential.

HMRC sets limits for both the size of total annual payments into a pension (annual allowance), and also the total size of the pension fund when you start to draw any benefits (lifetime allowance), and the tax penalties for exceeding them can be severe. These limits apply not only to SIPPs but to all pension plans.

Ask your adviser how one of our SIPPs can help you maximise the tax efficiency from your retirement plans.