New SIPP with II - Does the £100 offer mean transfer £16,000 or £20,000 net to qualify?

SarahB16

I was planning on opening a new SIPP in January with II anyway and can see that II has an offer that if you transfer £20,000 into your SIPP you qualify for the £100.  

I know I could contact them to clarify this and I probably will have to for confirmation but wondered if anybody knew whether if I opened a new SIPP with them and transferred £16,000 (net) to them whether this would qualify for the offer as it would be grossed up to £20,000.  

Does anybody know if that qualifies for the £100 offer re opening a SIPP with £20,000?    

I'm asking as I believe II has had similar offers in the past but will still confirm this with them directly when I get chance.  

Thank you very much.  

Sam_666

Did you try reading T&C?
It clearly state transfer or deposit must be atleast £20k. No ifs, no buts.

Marcon

Sarah - do you actually have a pension you can transfer? You've mentioned you are currently in the LGPS and this is the first SIPP you'll have, but possibly you have pension benefits from elsewhere. The fact you are talking about a transfer being 'net' suggests you actually have contributions in mind rather than an actual transfer from another pension scheme?

SarahB16

Marcon said:

Sarah - do you actually have a pension you can transfer? You've mentioned you are currently in the LGPS and this is the first SIPP you'll have, but possibly you have pension benefits from elsewhere. The fact you are talking about a transfer being 'net' suggests you actually have contributions in mind rather than an actual transfer from another pension scheme?

Yes, I was thinking about a new contribution (so the £16,000 would be grossed up to £20,000) and wondered if that would qualify as my deposit but it does not seem like it will.  

You're right though I have my LGPS pension, also another DB pension but I do have a small Standard Life DC pot from a job I had many years ago but that's only worth c.£12k so too small to meet II's criteria. 

It seems like re the SIPP offer with II, I won't be able to take up that offer but will still open an account with them as I find their fees to be very competitive.  

Thank you Marcon for your helpful reply.  

QrizB

SarahB16 said:

... but I do have a small Standard Life DC pot from a job I had many years ago but that's only worth c.£12k so too small to meet II's criteria.

If you have the money, you could pay £6.4k into the SL pension (which would be grossed up to £8k) to make £20k then transfer that into II.

SarahB16

QrizB said:

SarahB16 said:

... but I do have a small Standard Life DC pot from a job I had many years ago but that's only worth c.£12k so too small to meet II's criteria.

If you have the money, you could pay £6.4k into the SL pension (which would be grossed up to £8k) to make £20k then transfer that into II.

That's a really good point (not so much for the £100 bonus from II) but more for me to keep my SIPP in one place with II would be so much easier to manage when it comes to monitoring fund choices and then at drawdown all being taken from just II and not II and SL.  

The reason I won't pay the £6.4k is that I read on here (from helpful replies) how long it takes for the tax to be claimed back so I doubt Standard Life would claim the tax back on my £6.4k so it grosses up to £8k before 31st January however you have really made me consider moving my SL pension to the II SIPP that I will be opening very soon.  

Thank you very much that's a really wonderful suggestion.     

Marcon

SarahB16 said:

QrizB said:

SarahB16 said:

... but I do have a small Standard Life DC pot from a job I had many years ago but that's only worth c.£12k so too small to meet II's criteria.

If you have the money, you could pay £6.4k into the SL pension (which would be grossed up to £8k) to make £20k then transfer that into II.

That's a really good point (not so much for the £100 bonus from II) but more for me to keep my SIPP in one place with II would be so much easier to manage when it comes to monitoring fund choices and then at drawdown all being taken from just II and not II and SL.  

The reason I won't pay the £6.4k is that I read on here (from helpful replies) how long it takes for the tax to be claimed back so I doubt Standard Life would claim the tax back on my £6.4k so it grosses up to £8k before 31st January however you have really made me consider moving my SL pension to the II SIPP that I will be opening very soon.  

Thank you very much that's a really wonderful suggestion.     

Not if you pay to a SIPP which 'pre-funds' (ie adds tax immediately or very quickly). Please could one of the IFAs posting here, or possibly others who know which providers do that, confirm? You could do that and transfer your SL pension at the same time if you are really keen on the £100 incentive.

Albermarle

SarahB16 said:

QrizB said:

SarahB16 said:

... but I do have a small Standard Life DC pot from a job I had many years ago but that's only worth c.£12k so too small to meet II's criteria.

If you have the money, you could pay £6.4k into the SL pension (which would be grossed up to £8k) to make £20k then transfer that into II.

That's a really good point (not so much for the £100 bonus from II) but more for me to keep my SIPP in one place with II would be so much easier to manage when it comes to monitoring fund choices and then at drawdown all being taken from just II and not II and SL.  

The reason I won't pay the £6.4k is that I read on here (from helpful replies) how long it takes for the tax to be claimed back so I doubt Standard Life would claim the tax back on my £6.4k so it grosses up to £8k before 31st January however you have really made me consider moving my SL pension to the II SIPP that I will be opening very soon.  

Thank you very much that's a really wonderful suggestion.     

The traditional insurers, like Standard Life, normally prefund the tax relief, so it arrives in your account at pretty much the same time as your contribution.
This would be the case if it is one of their personal pensions, but not sure if it was a SL SIPP ( some of these lines between pensions and providers are getting a bit blurred) .

SarahB16

I really appreciate the helpful replies that I've received to my question. Whilst I have DB pensions and LGPS AVCs linked to my LGPS pension scheme I am very much new to SIPPs.

I re-read last night II's T&C's (had only scanned them before due to work commitments and getting everything ready for Christmas, etc) re their offer and as long as I initiate the transfer before 31st January and the transfer of funds happens within 12 months that will count towards my £20,000. I therefore opened my new II SIPP last night.

My Standard Life DC pension is worth c.£14k (telephoned today for an up-to-date valuation and confirmation my pension scheme could be transferred).  

In addition, as long as the aggregate amount (transfer and contribution) is more than £20,000 I will receive the II offer (£100). I therefore intend to add a new contribution into my SIPP of at least £6k (probably more) in January so the transfer and the new contribution will be in excess of £20,000.  

I know the £100 offer in the whole scheme of things is relatively small but as I was planning on opening a new SIPP with II in January anyway it seemed silly not to take advantage of the £100 offer but I wanted to ensure the approach I took meant I actually received the £100 so with the c.£14k from Standard Life (transferring to II and initiated today) and my new cash contribution in January of at least £6k this will meet the offer criteria.  

As I mention above thank you for all the helpful replies I received but special thank you to @Marcon you really have helped me a lot with both your responses and your patience with my queries.  

Sam_666

Its very common with SL workplace pension plans NOT to credit tax to sum paid in, or request moneies from hmrc.
Check with SL if your plan is one of those.

Marcon

Sam_666 said:

Its very common with SL workplace pension plans NOT to credit tax to sum paid in, or request moneies from hmrc.
Check with SL if your plan is one of those.

Depends how contributions are made - and the vast majority of workplace pensions (in the private sector) are relief at source, including SL. 

OP has just opened their own SIPP, so that's definitely a relief at source scheme.