Questions on SIPP (UK)

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Lauretta
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Questions on SIPP (UK)

Post by Lauretta »

Until recently I had planned to retire in Italy (my country of birth) but my personal circustances are changing (life is full of surprises :happy ). I am not 100% sure yet, but I think I'll probably settle in the UK, where I am presently resident, for at least many years to come.

I am 50, I never had a SIPP, but I have started to read about this type of scheme. I am on a long sabbatical, I don't know whether I'll work again; I think it's very unlikely that I'll do any paid work in the future. I have income in the UK from properties I own. And some saving. But my main assets are in Italy since until recently I planned to live there.

Questions:
- Can I open a SIPP now using income from rental properties (as opposed to income from a job) as the source of investment? (on the internet I didn't find anything against this but just wanted to check). Can I also invest money in a SIPP coming from other sources (like from cash savings, or by selling an ETF in a normal account and buying an investment in a SIPP)? I imagine in the latter case, even if it were possible, there wouldn't be any tax relief, right?

- Also, is it worth to open a SIPP given my circumstances I briefly described?
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Genghis
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Re: Questions on SIPP (UK)

Post by Genghis »

Given you’ve no “relevant earnings for pension contributions”, the maximum you can put into a SIPP is £3,600 per tax year, £2,880 actual money paid in grossed up to £3,600 with automatically claimed tax relief.

Take a look at under “Earnings that attract tax relief”:

https://www.gov.uk/hmrc-internal-manual ... /ptm044100
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Lauretta
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Re: Questions on SIPP (UK)

Post by Lauretta »

Genghis wrote: Sat Sep 05, 2020 6:36 am Given you’ve no “relevant earnings for pension contributions”, the maximum you can put into a SIPP is £3,600 per tax year, £2,880 actual money paid in grossed up to £3,600 with automatically claimed tax relief.

Take a look at under “Earnings that attract tax relief”:

https://www.gov.uk/hmrc-internal-manual ... /ptm044100
that's a good website, thanks. More exhaustive than the information I got from brokers websites. So I gather that rental property does not count, unless you do short term furnished lettings, which is more of an active business.
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TedSwippet
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Re: Questions on SIPP (UK)

Post by TedSwippet »

Lauretta wrote: Sat Sep 05, 2020 4:40 am I am 50, I never had a SIPP, but I have started to read about this type of scheme. ...
Just FYI, we have a wiki page specifically for UK personal pensions. It covers SIPPs, and also most of the rules around allowances, drawdown and so on, and hopefully should provide links/references to a reasonable selection of useful resources for you. You can find it here:

UK personal pensions - Bogleheads

If you notice anything missing or incorrect in this, please let me know and I will fix it.
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