Self Invested Personal Pension Plan (SIPP)

A Self Invested Personal Pension is the most flexible of the Personal Pension type plans. It operates in a similar fashion to a Personal Pension but it offers the widest choice of investment options to customers.

A SIPP may invest typically in the following assets within the scheme:

• Insured funds
• Mutual funds
• Deposit accounts
• Property
• Unit trusts
• OEICs
• Equities
• Gilts
• Loans
• Borrowing.

Whilst this list is not exhaustive it is fairly typical of the sort of investment seen in SIPP contracts. Technically speaking a SIPP could invest in any type of asset, however there are some restrictions governed by pensions law. In general terms investment in taxable property such as residential property or tangible moveable property (machinery, works of Art etc) will be heavily taxed.

HMRC also keeps a close eye on transactions between connected parties to ensure that market value is paid for any transactions.