Taxation and SIPPS
What is SIPPS
SIPPS, the self invested personal pension scheme, is a radical change to the provision of pensions in the United Kingdom, which uses the taxation system as an inducement for retirement planning. It essentially empowers the tax payer to determine how the contributions to their pension fund are invested. The most common use of this right is currently for the purchase of proerty.
SIPPS contributions are treated as other pension contributions, receiving automatic basic tax-relief, eith higher-rate payers being able to claim additional relief. Employer contributions are also permitted against coproration tax.
There are various other provisions worthy of note, including that the maximum contribution upon which tax relief can be claimed is £215,000. For more information in these, specialist websites like SIPPS World have emerged.