SIPP For non uk resident

jem16

stilldazed wrote: »

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.

You can have a pension - you just don't get the tax relief which makes it less appealing.

What you need to do is look at all the relevant charges and find out which is cheapest for what you want to invest in.

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.

Over the long term, you really should be investing as cash will not keep up with inflation. if using cash only you are simply swapping investment risk with shortfall and inflation risk.

mania112

There are questions that need to be asked before we say 'you can't have one':

A person who is not currently UK resident can contribute to the scheme if he/she:-

- has relevant UK earnings (employment income) chargeable to income tax during the tax year in question,

- is resident in the UK as some point during that tax year, or was resident in the UK at some point in the preceding 5 tax years and was also resident when he/she became a member of the scheme.

OR

- the individual or his/her spouse or civil partner has earnings in respect of overseas Crown employment, subject to UK tax during the year.


In addition, any employee may be a member of a UK registered scheme, regardless of nationality or residence, however tax relief on personal contributions will depend on which of the following categories apply:-

1 - Individuals with earnings chargeable to UK tax or who are UK resident: tax relief on contributions up to £3,600 or 100% of earnings if greater (maximum annual allowance).

2 - Non-resident individuals who do not have UK earnings: no tax relief on personal contributions.

3 - Non-residents individuals who do not have UK earnings but who were in Category 1 (above) within the last 5 years and were UK resident when he/she joined the pension scheme: tax relief on contributions up to £3,600.

I think it is a fact that anyone can have a UK pension.

atush

The point is w/o tax relief it could be cheaper to invest outside a pension, esp a Sipp. Not to mention finding a UK company (apart from the mentioned one James Hay) that would let you set one up.

As we have seen from ISA queries from those abroad, UK providers don't like taking on overseas investors. If it is allowed under UK law or not.

None of the above applies to the OP who has no UK earned income, and is not overseas crown employed.

They cannot have a pension in the conventional sense with any tax relief as they are not UK resident nor have they been in the last 5 years.

jem16

atush wrote: »

As we have seen from ISA queries from those abroad, UK providers don't like taking on overseas investors.

ISAs are rather different to pensions as you are not allowed to contribute to an ISA unless UK resident.

stilldazed

so it looks like paying in to a fund such as vangaurd would be my best bet if I wanted something held in the uk. I just really need to know if by the time I have paid fees to a company like HL and paid tax it would be worth my while?
There must be a lot of people in my position who want to invest for the future but don't know where to go.
Please don't tell me to look at the country I am residence in...I do not want to invest for my future in a greek pension held by the government.

jem16

stilldazed wrote: »

so it looks like paying in to a fund such as vangaurd would be my best bet if I wanted something held in the uk.

Why the UK? Will you be returning later as I asked earlier.

I just really need to know if by the time I have paid fees to a company like HL and paid tax it would be worth my while?
There must be a lot of people in my position who want to invest for the future but don't know where to go.

No-one can really answer that but you. I have given you the reasons why investing may be the right thing for long term but only you can make that final decision.

As to costs, it's unlikely that HL would be the best place with its 0.45% platform fee. Try looking at this site for a comparison of costs, although not all providers are on it.

http://www.comparefundplatforms.com/

If you still don't know what to do, you would be best finding a financial adviser who specialises in expats.

mania112

There are British IFA's in Greece. Seek one out.

bigadaj

mania112 wrote: »

There are British IFA's in Greece. Seek one out.

But are they regulated?

atush

jem16 wrote: »

ISAs are rather different to pensions as you are not allowed to contribute to an ISA unless UK resident.

Not in the cases mentioned where these were legally held ISAs from when UK resident and they needed to transfer (not make new contributions) as their current wrapper company had decided they no longer wanted to serve ANY NON UK residents even if the ISAs were valid.

mania112

I understand that overseas firms can still be authorised and regulated by the FCA - but certainly by the countries own authority.