For the Xafinity SIPP you can make single and regular payments, transfer money from other pension schemes and make in specie contributions. The same applies for the SimplySIPP except that this does not accept in specie contributions.
You can contribute as much or as little as you like. It’s very unlikely that the Xafinity SIPP will be appropriate if you invest less than £25,000. However, the SimplySIPP may well be appropriate if you have smaller amounts to invest.
You can get tax relief on your SIPP contributions. HMRC and HMT put a limit on the contributions that you can get tax relief for. Tax relief depends on your circumstances and may change in the future.
You can get tax relief on the first £3,600 you pay into your SIPP each year. You may also get tax relief on contributions above this amount. You can only get tax relief on your UK relevant earnings or the annual allowance , whichever is lower. The annual allowance is different for different tax years.
Your employer can also make contributions on your behalf. These contributions are not taxed as a benefit in kind. There is no limit on employer contributions paid on your behalf. However, if the total of your personal and your employer’s contributions is more than the annual allowance, you will need to pay income tax on the difference.
Further details can be found in the Xafinity SIPP Brochure or you can contact a member of the SIPP team.
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