SIPP Transfer

stu888

Hi
I am in the process of transferring a SIPP from one provider to another.  The provider that I am moving to will be giving me a cash incentive to do so.   Is this taxable, (I rather suspect that the answer will be yes) and if so where do I declare it on my self-assessment?

Thanks

incus432

My understanding is that cashback and swtiching bonuses are NOT taxable

There are other threads on here discussing this

jaybeetoo

I’ve never been taxed on a switching incentive for bank accounts, ISAs or SIPPs.

dunstonh

Cashbacks on pensions used to be a no go and HMRC taxed them as unauthorised payments.     However, at some point that stopped but I don't how, why or when.

jimjames

stu888 said:

Hi
I am in the process of transferring a SIPP from one provider to another.  The provider that I am moving to will be giving me a cash incentive to do so.   Is this taxable, (I rather suspect that the answer will be yes) and if so where do I declare it on my self-assessment?

Thanks

I'm in the process of doing the same. I wasn't expecting it to be taxed as I've never had to pay tax on any other switching bonus before.

DavidT67

stu888 said:

Hi
I am in the process of transferring a SIPP from one provider to another.  The provider that I am moving to will be giving me a cash incentive to do so.   Is this taxable, (I rather suspect that the answer will be yes) and if so where do I declare it on my self-assessment?

Thanks

Cashback is seen as a refund or discount on your platform fees, so is not taxable.  Referral bonuses for recommending new customer are taxable income, I believe.

Somebody

DavidT67 said:

Referral bonuses for recommending new customer are taxable income, I believe.

Really? How about energy, broadband, credit card etc sign up referrals?

QrizB

Somebody said:

DavidT67 said:

Referral bonuses for recommending new customer are taxable income, I believe.

Really? How about energy, broadband, credit card etc sign up referrals?

I've heard of people having to record those referrals as earnings. Generally it's been people making significant money with successful referral schemes from eg. running a useful website like energy-stats.

See for example the second half of this Q&A:

https://community.hmrc.gov.uk/customerforums/bt/fd00c391-56cb-ee11-a81c-002248c8d5f2

Which refers out to here:

https://www.gov.uk/government/publications/statement-of-practice-4-1997/statement-of-practice-4-1997

MarkCarnage

I would have thought that one off referrals would come under the catch all £1,000 exemption for any side earnings you may have - usually used for things like eBay sales but this would come under it too. HMRC aren't really going to be interested if someone gets a one off £50 for a referral. They would be if you did it every week I suspect...