Freedom Self-Invested Personal Pension (SIPP)
Our Freedom SIPP is a flexible pension that allows customers to consolidate existing pension arrangements into one place and continue to build up their savings. Unlike traditional pension arrangements, a SIPP is structured to give customers more control over their investment decisions.
Before you choose a SIPP, make sure you understand its aims and risks. Avalon does not give advice. If you are unsure whether our SIPP is suitable for you, you should seek professional financial advice.
Who can use it?
The Freedom SIPP is open to UK residents who have a National Insurance number. Customers may be first time savers or experienced investors consolidating different pension pots into one.
Please note we do not accept applications from individuals who are US persons for tax compliance purposes.
Can I consolidate my savings from other SIPPs?
Yes, we will be pleased to provide you with assistance to consolidate your pension savings into one Freedom SIPP. We recommend that before doing so you seek financial advice. For some complex pension arrangements, such as company pension schemes or overseas schemes, your financial adviser will contact us to discuss whether we can help.
Are there limits on how much I can contribute?
You are free to contribute as much as you like whenever you want to, subject to HMRC limits.
Contributions you pay into your Freedom SIPP generally qualify for income tax relief, but you will only receive income tax relief up to the value of your earnings in the tax year in which the contributions are paid.
In addition, if your total contributions (and those made by your employer and other people on your behalf) to all UK registered pension schemes exceed the annual allowance (£40,000 for the 2016/17 tax year) you will be liable for a tax charge on the excess set at your marginal rate of income tax. The annual allowance is normally lower if you have already accessed your pension savings or if you earn over £150,000.
Is there a limit to the size of fund I can build up?
If the total value of your pension savings exceeds the lifetime allowance (£1m for the 2016/17 tax year) you will be subject to a tax charge on the excess. If you believe that your total pension savings might exceed the lifetime allowance you should seek financial advice.
Please remember the value of your investments and any income from them can go down as well as up. The value of your fund may be less than you paid in.
What investments are allowed?
The Freedom SIPP is predominantly designed to hold mutual funds, model portfolios or other individual liquid investments. Any funds or instruments used are subject to our internal investment controls which vary from time to time.
Where are these investments held?
All assets in your pension are held for your benefit in trust by Avalon SIPP Trustees Limited.
How do I get my money out?
There are a range of options open to you. Your financial adviser will be able to recommend the most appropriate option for your circumstances. You can leave your funds invested and withdraw funds as you need them either as a regular income or a lump sum. Alternatively, you can use all or part of your fund to purchase an annuity.
You should view your pension investments as being for the long term. You won’t normally be able to take money out of your SIPP Account until you are at least 55.
Is it tax-efficient?
A SIPP is a tax-efficient way of building up your savings for when you retire. When you make a contribution to your Freedom SIPP the Government gives you back the income tax you have paid on that contribution at the basic rate of income tax (20%). If you are a higher or additional rate tax payer you can claim additional tax relief each year through your tax return.
Laws and tax rules may change in the future without notice. The information here is based on our current understanding of the tax rules. This information takes no account of your personal circumstances which may have an impact on tax treatment.
Who administers my plan?
Your plan will be administered at Rowanmoor’s offices in Salisbury, Wiltshire, which like Avalon, is part of the Embark Group. Rowanmoor is an award-winning provider of bespoke SSASs, SIPPs and Family SIPPs and provides a friendly and personable service, where you can speak directly to the team managing your plan on 03445 440554 or by email at firstname.lastname@example.org.
How much does it cost?
You can download a copy of our fee schedule here.
Is the Freedom SIPP suitable for me?
Avalon is the administrator of your plan. We are not authorised financial advisers and cannot provide you with advice about your pension or your investments. You should take financial advice from an adviser authorised by the Financial Conduct Authority, the UK regulator of financial services. You can find an adviser at www.unbiased.co.uk
Can I apply to you directly?
No, we only work with authorised financial advisers so we can be sure your plan and your investments are right for you.