How to open a Sipp

mbbetter

Hi all,

I'm currently saving around £500 a month into a halifax sharebuilder. I think that given I'm a higher rate taxpayer I would be better off doing this in a Sipp. I'm maxing my isa at the moment and it seems crazy not getting tax relief on the shares I'm buying. 40% gets a lot more shares!

What is the process for opening a sipp?
- Just go online find a provider, transfer some funds and off I go?

How do I benefit from tax relief?
- Do I need to fill in a self assessment? Do I then get a tax rebate at the end of the year? This is the bit I find most confusing as I can't find it explained anywhere.

Any recommended providers for this low amount per month? Both for individual company shares and if possible good funds like Vanguard

Thanks in advance!

atush

You would benefit from a pension yes, be it a Sipp or a Personal pension. What pension does your employer have? that is always the best place to start as you get their money too.

A sipp is good if you want to buy single shares rather than funds, although funds are diversified so less risky.

you can open a Sipp online today at HL or a PP online at cavendish online.

mbbetter

Thanks for the reply.

I've just changed jobs and currently there is no employer pension.

I have a couple of old pensions from previous employers, but I'm leaving these dormant for now

xylophone

I've just changed jobs and currently there is no employer pension.

I have a couple of old pensions from previous employers, but I'm leaving these dormant for now

An employer pension scheme should be available in due course

https://www.gov.uk/workplace-pensions/about-workplace-pensions

The old pensions are deferred DB? If so, they should revalue in deferment.

If DC, the value will vary with the underlying investments.

Re pension tax relief

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief


http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator