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Transferring ISA to SIPP
PennyPurple
Posts: 61 Forumite
Forgive me if it's a silly question but...
I have built up approx £30K world of Stock ISAs over the past years. It's all in L&G, mostly index trackers (UK, Europe, US, Japan) and a bit of Managed Fund (Health & Pharms).
If I now wanted to open up a SIPP, could I move all or part of these ISA funds into my SIPP, and would I get the 40% additional 'contribution' from the government because it's going into a pension (I'm a higher rate tax payer)?
Is there any disadvantage of doing this that anyone can think of?
I would very much appreciate any advice.
Regards,
Penny
I have built up approx £30K world of Stock ISAs over the past years. It's all in L&G, mostly index trackers (UK, Europe, US, Japan) and a bit of Managed Fund (Health & Pharms).
If I now wanted to open up a SIPP, could I move all or part of these ISA funds into my SIPP, and would I get the 40% additional 'contribution' from the government because it's going into a pension (I'm a higher rate tax payer)?
Is there any disadvantage of doing this that anyone can think of?
I would very much appreciate any advice.
Regards,
Penny
0
Comments
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Is there any disadvantage of doing this that anyone can think of?
You lose all that tax free capital you have built up. Now a pension with higher rate tax relief could make up some of that over time but it depends on how long you have.
Also, higher rate tax is pro rata. i.e. dont expect to get 40% relief on £30k if you are only £2000 into higher rate tax band.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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