Signia Invest SIPP FAQ

You can either set up a completely new SIPP with Signia Invest or cash in an existing SIPP and transfers the money into our Signia Invest SIPP tax wrapper (provided and operated by Hartley Pensions Limited)

You can view the full terms and conditions and FAQ’s through the Signia Invest Platform.

 

What is a SIPP?

A Self-Invested Personal Pension or SIPP is a tax-efficient* investment vehicle through which you can invest in a wide range of UK and international investment products. A SIPP offers up to 45% tax relief on contributions. Any investment gains that arise from your SIPP are free** from income, dividend and capital gains tax.

* HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

**Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.

Who can invest through the Signia Invest SIPP wrapper?

Any UK resident person can invest through the SIPP wrapper.

How do I open a SIPP?

Before investing through the Signia Invest SIPP wrapper you need to:
• read the Hartley Pensions Limited Terms and Conditions, the Hubwise Securities Limited Terms and Conditions, the Key Features Document and any other documentation which we provide you with, very carefully;
• be aware of the risks attached and be comfortable with the fact that the value of your investments could fall as well as rise;
• complete the relevant online application form.

Can I change my mind?

Yes, you have a legal right to cancel the establishment of your SIPP, within 30 days of when you receive our welcome pack which contains a cancellation notice. Please note that any fees incurred during the time between the establishment of the SIPP and the cancellation will be borne by you. Similarly, any losses on investments are borne by you.

Can I transfer my existing pension?

In most cases, yes. We accept transfers in from HM Revenue and Customs recognised schemes. However, defined benefit schemes (e.g. final salary schemes) generally prevent transfers to a SIPP unless you have received personal advice from an adviser who is regulated by the Financial Conduct Authority who holds the appropriate pension transfer qualifications. If the value of your transfer is £30,000 or above, the transfer must be on a fully advised basis by a suitably-qualified pensions specialist. Please contact us if you wish to transfer your existing pension. Please note that, although we do not charge a fee to transfer your pension, your pension provider may charge you to transfer out of their scheme.

How much money can I contribute in a year and what tax relief* will I receive on contributions?

There is no limit on the amount of money you can contribute to your SIPP each year but the amount you contribute may have tax implications. The contribution amounts are based on your UK relevant earnings. If you have no relevant UK earnings then you are still able to make contributions up to £3,600 each year. If you do have relevant UK earnings then you can receive tax relief* on contributions up to the amount you earn, to a maximum of £40,000. We will claim tax relief at the basic rate (currently 20%) from HMRC on a monthly basis. However, if you make contributions above the current limit of £40,000, you may incur a tax charge via HMRC’s ‘annual allowance tax charge’. The annual allowance is set each year by the UK Government and therefore may change in the future. Further information on the annual allowance tax charge and on contributions in general is available on the technical pages of the Hartley website, www.hartleypensions.com. Please seek specialist tax advice if you have specific tax concerns. All contributions made into your SIPP are subject to a correctly completed contributions form which can be found on the Hartley website, www.hartleypensions.com.

 

*HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

 

Is there a minimum contribution level?

If you transfer your existing pension, there is no requirement to make any contribution. There is no minimum level for one off or regular monthly contributions.

Who can contribute to my SIPP?

You can make personal contributions, other people can make contributions e.g. your spouse or parents, and your employer can make contributions.

Can I have more than one SIPP?

We would not open two SIPPs for you but it is possible to have another SIPP with a different provider. If you run two SIPPs concurrently you may have to pay a tax relief charge to HMRC if you have received more than the allocated tax relief in any one year.

What is the lifetime allowance?

This is the amount that you can receive over your lifetime before being liable for a tax charge. The current lifetime allowance can be found in the Frequently Asked Questions section of the Hartley website. Your SIPP may be subject to additional tax charges at the point you withdraw funds if your pension is valued at more than the lifetime allowance.

 

When can I access my SIPP?

The earliest age you can start taking money from your SIPP is 55 years (due to rise to 57 in 2028) unless you are in serious ill health, as defined by the Finance Act 2004.

 

 

What happens to my SIPP if I die?

When we are notified of your death by your personal representative, we will ask for a copy of your death certificate.
We will carry out due diligence on the beneficiary and then discuss options with him or her. Please note that the trustee retains ultimate discretion over the distribution of your pension, despite a beneficiary being named.
If you die before you reach the age of 75, your beneficiary can choose:
• to take a tax-free**; lump sum or transfer the SIPP into their own name – subject to the benefits being designated within 2 years of the date of death. If you die after the age of 75, your beneficiary can choose to:
• take the whole pot as a lump sum but this will be subject to a tax charge at the marginal rate of the beneficiary; or.
• to transfer the SIPP into a pension arrangement in their own name which can be used to take an income via drawdown. Any income taken will be subject to income tax at the beneficiary’s normal rate.
** Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.

 

 

 

If I am not satisfied, can I transfer out to another provider?

Yes, you can transfer out to another provider as long as the provider is HMRC approved. Subject to the entire portfolio moving, a fee not exceeding the previous year’s management charge would be levied.

Is my money protected in any way?

Whilst your money is being held in your SIPP bank account which we set up for you, it is covered by the FSCS’s UK deposit recovery scheme, up to the maximum (£85,000 at the time of writing). When your money is invested on a particular platform/s it may not be covered by the FSCS. For more information, please visit: www.fscs.org.uk