Contribution levels
Minimum (gross contributions)
- The minimum lump sum contribution is £1,000.
- There is no minimum for monthly contributions.
Maximum (gross contributions)
The SIT SIPP accepts contributions up to the limits set by HMRC for tax relief.
Basic level contributions
You can make gross contributions of up to £3,600 each tax year and receive basic-rate tax relief (currently 20%), regardless of whether or not you have taxable UK earnings. This makes the actual cost to you just £2,880.
The scheme administrator claims £720 from HMRC on your behalf and pays this into your SIT SIPP on receipt.
If you are a higher-rate taxpayer you can claim further tax relief through your self-assessment tax return.
Larger contributions
If you are earning more than £3,600 a year and wish to make gross contributions of more than £3,600 in any tax year, the maximum contribution on which tax relief is available will be 100% of your UK earnings.
Annual allowance charge
If total contributions for tax relief, together with any employer contributions and accumulated benefits over that year, exceed the annual allowance of £50,000 (for tax year 2012/ 2013), you will be subject to the annual allowance charge. For more information, please see The SIT SIPP Key Features Document.
Pension contributions by your employer
If you are employed, your employer can also make gross contributions into your SIT SIPP.
Contributing for partners and children
Most people under the age of 75 who live in the UK are eligible for a SIT SIPP. This means that your spouse or partner, children or grandchildren could have a SIT SIPP and take advantage of tax relief on contributions of up to £3,600 each tax year, even if they are not earning.
Transferring existing pension benefits