Do you know that SIPP pension is a personal pension scheme that is approved by the government of United Kingdom? And do you know that under this personal pension, you are allowed to choose investments of your choice from the collection of accepted investments by the HMRC (HM Revenue and Customs)?
With SIPPs, like stakeholder pension another type of personal pension, tax rebates are also allowed on your contributions. But these are in exchange for limits on accessibility. And also under this scheme benefit withdrawal, rules for contributions and others are the same with other types of personal pension.
Although under SIPPs having any investments that are HMRC-accepted is alright, there are still some that are not allowed by most providers. Not allowed by most, for some of these are subjected to weighty tax penalties. That’s why there are allowed by primary legislation but will eventually be banned by providers due to their high tax penalties. And these weightily taxed investments are the following:
- Residential properties
- Assets which are somewhat unusual, but highly collected, like art, stamps, classic cars, etc.
- Concrete and movable properties, less than £6,000, are subjected to additional conditions with regard to how they are used.