SIPP For non uk resident

stilldazed

Hello

I am about to turn 40 and suddenly retirement doesn't seem that far off!

I have been living overseas since 2007 and not making contributions to any pension. previous to that I was part of a company scheme that is estimated to be worth about 50 k when I can access it at 50, this isn't going to last me very long so I want to start paying into a private pension. I want to have a private pension in the UK as I understand and trust the system more than where I am (Greece).

So I would really appreciate so information, from what I understand as a non UK resident I am able to open a SIPP? Is this my best options? Where do I start?

I am a complete novice but really what to get this sorted, any advice gratefully received.

atush

A pension of any kind gets tax relief, so no, as you are not a UK taxpayer you can't have one.

Some things you can do- pay voluntary nics to get up to 35 years so you get a full state pension, invest in equities thru a UK broker (which is in effect a SIPP w/o the tax relief)

jem16

stilldazed wrote: »

So I would really appreciate so information, from what I understand as a non UK resident I am able to open a SIPP?

Yes you can but you will not be able to take advantage of tax relief which is the greatest advantage to pensions so I'm not sure there would be much point at present.

Is this my best options?

In your situation probably not as there's no advantage. You would be as well just investing outside any tax wrapper as atush suggests.

stilldazed

so is there any point in investing if I am going to have to pay tax? also what about a QROPS would this be more tax efficient?

has anyone been in my situtation and wanted to invest in a pension or other investments based in the Uk whilst being a non uk resident?

jem16

stilldazed wrote: »

so is there any point in investing if I am going to have to pay tax? also what about a QROPS would this be more tax efficient?

You don't pay tax. You just don't get the added tax relief as anyone investing in a UK pension would. For example if someone paid in £80 the provider would make it up to £100. You wouldn't get this extra £20 as you're not a UK taxpayer.

Please note that not all SIPP providers would allow you to invest as you're not a UK resident.

QROPs doesn't apply. That's for transferring a UK pension to an overseas pension scheme.

Are you planning on returning to the Uk for retirement? You should really be exploring the tax efficient schemes in the country you are residing in although I can understand your reticence in doing so.

atush

stilldazed wrote: »

so is there any point in investing if I am going to have to pay tax? also what about a QROPS would this be more tax efficient?

has anyone been in my situtation and wanted to invest in a pension or other investments based in the Uk whilst being a non uk resident?

Yes, there is a point in investing as dividends are already tax paid and then there is the point of growth (above inflation/savings rates).

Your other option would be to investigate and private pensions available where you pay tax.

stilldazed

Thank you for explaining that QROPS are not an option. So a SIPP (If the company allows me to open it as a non UK resident) is still worth opening?

Would it be worth investing in a life strategy fund such as vanguard even though I couldn't have an isa wrap?

I am not a uk resident although I am a uk tax payer (very small amount of tax that I pay for buy to let properties) does that make me eligable?

Again, I really appreciate any info things are already a bit clearer!

jem16

stilldazed wrote: »

Thank you for explaining that QROPS are not an option. So a SIPP (If the company allows me to open it as a non UK resident) is still worth opening?

I'm not sure I see the advantage of a SIPP if not receiving tax relief. The money is locked in till at least age 55 and you are then limited to a certain amount each year.

If you were to invest outside a pension, you could access the funds at any time and take what you like when you like.

Why do you want to use a pension tax wrapper?

Would it be worth investing in a life strategy fund such as vanguard even though I couldn't have an isa wrap?

As above.

I am not a uk resident although I am a uk tax payer (very small amount of tax that I pay for buy to let properties) does that make me eligable?

No. You have to be a UK resident.

This is one SIPP provider that will allow you to open a SIPP as a non UK resident. It is not a recommendation.

http://www.jameshay.co.uk/DocumentView.aspx?DocumentID=2642&DocumentRef=MAN0648

atush

No, a Sipp is not for you-it is a pension. You can't have a pension.

A sipp w/o tax relief is just a normal unwrapped investing account. So open one of those. AS it is cheaper. Sipps are more expensive than regular investing accounts.

A vanguard fund would be fine, as would others of the type or a basket of trackers.

BTL is unearned income so does not make you eligible.

stilldazed

Thank you!
It's starting to make sence, so basically my best bet would be some sort of fund (such as vanguard) not as a pension or an isa as i can't have that but just as a regular Investment.But the key is,it would still be worth doing even without the tax incentive of a sipp or isa wrap?..obviously taking into account that all investments have an element of risk.

mania112

atush wrote: »

No, a Sipp is not for you-it is a pension. You can't have a pension.

Why can't he have a pension?