Sipps

TheMsTeal

Excuse a dunce question from a SIPP newbie! I started a SIPP about 6 months ago, holding the money as cash. I assumed that the tax relief was claimed and held automatically for me but a letter I just received from them (a general letter sent to me because I changed my direct debit instructions) has confused me. It states "Your tax relief is is also unable to be earmarked for alternative investment or held in cash unless you contact us". So does that mean that they haven't been claiming and holding that tax relief because I didn't specifically contact them a second time?

Dazed_and_confused

Wouldn't it be easiest to log into your SIPP account and compare the balance with your contributions and check for other transactions i.e. tax relief credits

TheMsTeal

Good idea! I never bothered to get an online account for it to be honest, as it is just something I contribute to once per month and I assumed they were handling it, it's not like a current account where you are making many transactions per month. I will register for one today!

Albermarle

With SIPPS the tax relief appears some weeks after the initial investments. I think when it does arrive different SIPPS have different rules about where it goes in your SIPP account.

dunstonh

SIPPs area more advanced option than personal pensions and stakeholder pensions. PPPs and SHPs prefund the tax relief and invest it automatically. Some SIPP providers will follow your default investment selection but others will just pay it into cash and wait for you to invest it.

You have to be much more hands on with a SIPP than a PPP or SHP.

barnstar2077

Takes a couple of months for the tax relief to turn up in my SIPP.