What are they?
A SIPP is a self invested personal pension and a SSAS is small self administered scheme.
Why are they of interest?
They provide for some a tax efficent way of investing.
Why look at investing by way of a SIPP or a SSAS
– growth is free from CGT
– tax relief at the individual or company’s highest rate
– rental income received by a pension scheme attracts no UK income tax
– on retirement 25% of the pension fund can be paid as a tax free lump sum
– on death before retirement the whole payment under the pension fund could be paid as a tax free lump sum i.e. no inheritance tax
The difference between a SIPP and a SSAS
small occupational pension scheme set up by the directors
– members are usually employees or directors of the employer
– each member has a a notional share of the SSAS funds
– more flexible on investment
– can lend to the company
SIPP is a personal pensions set up by an insurance company or specialist SIPP operator.
– open to anyone
– usually a minimum fund size
-There are usually higher running cost