This question arises from time to time. Note that the following information is based on our interpretation of tax legislation, HMRC practice and our own pension scheme rules.
In most cases, it is NOT possible to make a refund of contributions made to a registered pension scheme, except where:
1. The customer has exercised their right to cancel the entire SIPP, which applies in the first 30 days since the SIPP commenced.
Note that the cancellation rules mean that the whole SIPP would be cancelled and could not be restarted. If the customer still wished to have a SIPP with us, a fresh application would be required.
2. A personal contribution has been made in the tax year, which is higher than the individual’s relevant UK earnings.
In this case, it may be possible to make a Refund of Excess Contributions Lump Sum payment to the customer, with any associated tax relief paid back to HMRC within 90 days of discovery.
Note that there would need to be sufficient uncrystallised funds in the SIPP to make the payment, and that it may be necessary to revalue the assets of the SIPP where there is a mixture of uncrystallised and crystallised funds. We would require sufficient evidence that the customer is eligible to receive the Refund of Excess Contributions Lump Sum. It would not be possible to only refund part of the excess amount.
We will always require evidence of the amount of relevant UK earnings for the individual, and we would not agree to a Refund of Excess Contributions Lump Sum during the same tax year as the contributions were paid.
For more details about these payments please visit: https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm045000#Refundecls
3. Exceptionally, the contribution to be refunded falls under the ‘genuine errors’ provisions.
These types of error could occur for instance, if an employer makes regular contributions and their bank didn’t process the instruction to stop the payment and can provide evidence this.
Whilst it may appear that this type of error can cover a lot of ‘mistakes’, they tend to be mechanical in nature and as such are very rare and do not cover things like being unaware of contribution allowances and the associated tax rules or relying on the advice of others.
You can read more about this here: https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm146000
Note that we will always make a refund if instructed by a UK Court Order.
September 30th, 2024
The Minerva SIPP can invest in a wider range of assets including commercial property and land, on an individual or group basis. Any combination of permitted investments may be made within a Minerva SIPP including deposit accounts, DFM, open market platform/wrap accounts, stockbroker accounts and trustee investment plans, all held together within the same SIPP.
SIPP Lite is a lower cost option, for those that do not require multiple investment accounts, or access to commercial property and land at outset. SIPP Lite members are restricted to a maximum of one investment account, to run alongside the default SIPP bank account. This investment account could be another bank account or ONE of the following: stockbroker account, DFM, open market platform/wrap account or a trustee investment plan. For individuals that require additional investments at a later date, including commercial property and land, they can upgrade their SIPP Lite plan to a Minerva SIPP.
A Small Self-Administered Scheme (SSAS) is a type of UK registered pension scheme. Each SSAS is governed by its own trust deed and rules and is a separate legal entity to the sponsoring employer. The sponsoring employer establishes the SSAS and invites members to join. Any individual employed by the sponsoring employer (or a participating employer) may join the scheme and all members are appointed as trustees alongside the professional trustee. SSAS trustees have a very wide range of investment options, including the ability to make secured loans to the sponsoring employer of up to 50% of the net asset value of the scheme, subject to certain conditions.
We have been operating in these markets for over 20 years. The SSAS business was formed in 1997, and in 2003 we launched our flagship product, the Minerva SIPP. The range is completed by SIPP Lite, which has been available since July 2012.
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