If you trade UK stocks in the SIPP to make a capital gain but do not contribute or down draw does hmrc need to know the transactions. I have a tax allergy.
“On the way out” So am I right in thinking if before retirement you worked 1 year or so to get into the new tax year you would end up getting the lower tax on the SIPP?
I'm self employed and a higher tax payer, am I right in thinking that in terms of tax efficiency theres really no difference between a SIPP and pension, unless when you withdraw you then become a low tax payer (20% as opposed to 40%). I still think I will use a SIPP to reduce my overall tax bill a year first and then perhaps look into a stock and shares ISA. Additionally with your example you just assumed one has already taken 25% from their SIPP, so actually SIPP's overall are more tax efficient? Thanks :D
I have an NHS pension, I work agency work at times, they are now asking if I want to sign up with an Umbrella company pension scheme, would this be considered a private pension? Would I be taxed 25% twice with the two different SIPP??
NHS pension is not a SIPP, it's a government sponsor pension plan with its own rules. The umbrella company pension scheme that you have been offered would be a private pension scheme where you have limited amount of control in its investment decision. This is also not a SIPP. You will not be taxed twice if you decide to join the Umbrella company pension scheme and will receive additional tax refund from the government @ 20% on your contributions.
Hi Tim, We really enjoyed your video! Just wondering where we could find an ISA that would pay 6%? I might be missing something but I can only ever find ones that pay just over 3% Also It would be lovely to see a video on the 2015 NHS pension changes and what the best options were to those who seek a slightly early retirement (like me!).
Video was made years ago.. Nowadays be happy with 3% Do fixed deposits.. Peer to peer is risky.. Savings is different to investing.. Other ways to save is cut out unnecessary expenses live below your means.. or get a better paid job that's the best way to earn more..
Hi Tim, great video. One question I do have that wasn't really explained is the lifetime allowance on the SIPP. The current lifetime allowance is 1 million. If I have 2 million in my SIPP then what happens to the remaining one million after the lifetime allowance has been exceeded?
Hi Trevor, any excess over the current LTA of 1 million is subject to a tax charge depending on how the money is withdrawn. A 25% tax charge applies if the money is taken as an income e.g. an annuity or drawdown and a 55% tax charge applies if the money is taken as a cash lump sum.
@@MrHiddenTalent I know this is an old comment. But it sounds like to me, if you're an investor you're better off having an ISA over a SIPP if you think you plan to be a millionaire at some point. Especially if you have a small income and are just funding money into a index account, for example, and hope to have the reward in 30/40 years time.
