Benefit of self invested pensions


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Benefits of using self invested pensions through a specialist Provider

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  • # tax considerations may apply beyond age 75 PCLS – draw before age 75 to avoid tax charges
  • Benefit of self invested pensions

    1. 1. The benefit of self invested pensions through a specialist Provider [email_address] 01483 521521
    2. 2. Why Dentons <ul><li>Bespoke Provider of: </li></ul><ul><li>SIPP (Self Invested Personal Pensions) & </li></ul><ul><li>SSAS (Small Self Administered Schemes) </li></ul><ul><li>Established 1979 – over 30 years’ pension experience </li></ul><ul><li>Independently owned </li></ul><ul><li>Over 2000 SIPP policies </li></ul><ul><li>Over 650 SSAS schemes </li></ul><ul><li>Flexible service </li></ul><ul><li>Experienced staff </li></ul>
    3. 3. What can a SIPP do for me? <ul><li>A SIPP can provide: </li></ul><ul><li>Control of capital and investments </li></ul><ul><li>Control and transparency of costs </li></ul><ul><li>Flexibility of investments and benefits </li></ul><ul><li>Major tax advantages </li></ul><ul><ul><li>Contribution relief at the client’s highest marginal rate up to 50% (subject to certain limits) </li></ul></ul><ul><ul><li>No Capital Gains Tax </li></ul></ul><ul><ul><li>No Income Tax (dividend yield excepted) </li></ul></ul><ul><ul><li>Tax free Pension Commencement Lump Sum </li></ul></ul><ul><ul><li>Outside of estate for IHT </li></ul></ul><ul><li>No requirement to purchase an annuity – ever! </li></ul>
    4. 4. What can a SIPP invest in? <ul><li>Stocks and shares quoted on the UK Stock Exchange </li></ul><ul><li>Stocks and shares traded on a recognised overseas stock exchange </li></ul><ul><li>Shares in open ended investment companies (OEICs) </li></ul><ul><li>Futures and options traded through a recognised exchange </li></ul><ul><li>Unit trusts and investment trusts </li></ul><ul><li>Insurance company managed funds and unit linked funds </li></ul><ul><li>Deposit accounts with any authorised financial institution </li></ul><ul><li>Second hand endowment policies via a recognised dealer </li></ul><ul><li>FSA recognised offshore funds </li></ul><ul><li>Trustee borrowing from an authorised institution </li></ul><ul><li>Hedge funds </li></ul><ul><li>Unregulated Collective Investment Schemes </li></ul><ul><li>Unquoted equities (subject to individual consideration) </li></ul><ul><li>Commercial property or land </li></ul><ul><li>Intellectual Property </li></ul>
    5. 5. What is NOT permitted? <ul><li>Nothing …. however, tax charges will apply to </li></ul><ul><li>certain investments such as </li></ul><ul><li>- Residential property </li></ul><ul><li>- Tangible Taxable Property </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Yachts </li></ul></ul><ul><ul><li>Cars </li></ul></ul><ul><ul><li>Wine </li></ul></ul><ul><ul><li>Art </li></ul></ul>
    6. 6. SIPP v SSAS SSAS SIPP <ul><li>Yes: as for SIPP </li></ul><ul><li>Plus to sponsoring employer - </li></ul><ul><li>security required </li></ul><ul><li>max term of 5 years </li></ul><ul><li>max loan 50% of scheme assets </li></ul><ul><li>Capital & Interest Repayments </li></ul><ul><li>minimum rate is 1% above </li></ul><ul><li>base: currently commercial </li></ul><ul><li>basis is 2.5% + base rate </li></ul>Yes: must be unconnected and on commercial terms Loans One trust for each scheme Master Trust with individual sub-trust for each member Trust Same as SIPP >£3,600 or 100% UK earned income Maximum £50K pa plus unused allowance (3 year carry forward) Contributions Sponsoring Employer required Anyone Eligibility SSAS is not regulated by FSA Provider is FSA regulated Regulation
    7. 7. SIPP v SSAS SSAS SIPP No Yes – held separately but within the same SIPP as for non-Protected Rights funds but can be invested in the same way Protected Rights One trust and all investments are jointly owned Impact on fees must be considered Yes, assets held separately can include a share in a group investment Joint Purchase/ Syndicated Investment Yes, same as SIPP but only up to 5% in sponsoring employer Yes, subject to individual consideration Up to 20% of company maximum Unquoted Shares
    8. 8. SIPP retirement options <ul><li>Earliest age 55 irrespective of employment </li></ul><ul><li>No limit on latest age but possible charges on death if </li></ul><ul><li>beyond age 75 </li></ul><ul><li>Pension Commencement Lump Sum – 25% of fund </li></ul><ul><li>Income taxed at marginal rate </li></ul><ul><li>Retirement options </li></ul><ul><ul><li>Annuities </li></ul></ul><ul><ul><li>Phased Retirement </li></ul></ul><ul><ul><li>Capped and Flexible Drawdown </li></ul></ul><ul><ul><li>Scheme Pension </li></ul></ul>
    9. 9. Benefits on death <ul><li>Death before age 75 and no benefits drawn </li></ul><ul><li>Whole of plan can be paid, outside of estate (subject to limits) </li></ul><ul><li>Death after vesting benefits </li></ul><ul><li>3 options: </li></ul><ul><ul><li>Pension paid to spouse/ dependants; tax at marginal rate </li></ul></ul><ul><ul><li>Purchase an annuity for spouse/dependants; tax paid at marginal rate </li></ul></ul><ul><ul><li>Proceeds distributed less tax at 55% </li></ul></ul><ul><li>Death after vesting tax free cash – no income taken </li></ul><ul><li>Pension fund subject to a 55% tax charge </li></ul>
    10. 10. Dentons service <ul><li>Each introducer/client is allocated to one of six </li></ul><ul><li>administration teams for continuity of service </li></ul><ul><li>Each team is headed by a highly qualified and </li></ul><ul><li>technical pension consultant </li></ul><ul><li>Average service of consultants is 19 years </li></ul><ul><li>Pension consultants are available for meetings with introducers and clients </li></ul><ul><li>Administration staff are multi skilled – we do not operate on a departmental basis </li></ul>
    11. 11. <ul><li>“ We have assessed a number of companies </li></ul><ul><li>where the customer base includes IFAs and </li></ul><ul><li>Dentons score of 7.79 from IFAs is the highest on </li></ul><ul><li>record. We consider this to be significant as the </li></ul><ul><li>IFA community deals with a range of product </li></ul><ul><li>providers and IFAs are therefore uniquely placed </li></ul><ul><li>to judge what “good” looks like. They’ve </li></ul><ul><li>given Dentons a big thumbs up”. </li></ul><ul><li>Quote by Neil Craig, Managing Director of IIC </li></ul>Dentons service – ‘outstanding’
    12. 12. Please Contact us <ul><li>Self Invested Pension Specialists </li></ul><ul><li>Dentons Pension Management Limited </li></ul><ul><li>Sutton House, Weyside Park, Catteshall Lane, Godalming, Surrey GU7 1XE </li></ul><ul><li>Dentons Pensions Management Ltd ( Reg No 2352951), Denton & Co Trustees Ltd </li></ul><ul><li>(Reg No 1939029) and NTS Trustees Ltd (Reg No 1407848) are </li></ul><ul><li>registered in England with their registered offices being as above. </li></ul><ul><li>Dentons Pension Management Ltd is Authorised and Regulated by the </li></ul><ul><li>Financial Services Authority </li></ul>Tel: 01483 521521 Fax: 01483 521515 [email_address] Please note that Dentons is unable to provide advice and we therefore recommend that you take advice from a Financial Adviser