Last week, the Chancellor delivered his Spring Statement, which in many ways feels like a mini Budget. With so much going on in the world, rising inflation, a looming energy crisis and the impact of war in Ukraine, a lack of any big announcements in the world of pensions was welcomed by most commentators.
Tax relief rules on pensions remain unchanged, and so when the Chancellor said that he would like to be able to reduce the basic rate of tax from 20% to 19% in England by the end of this parliament, subject to hitting particular conditions, this raises the prospect of lower tax relief and slightly more complicated tax relief calculations for basic rate taxpayers in the future. Higher rate taxpayers would still receive the same overall amount of tax relief but would need to claim the difference from HMRC.
As ever, this information is based on our understanding of the proposals and is subject to future change. Customers should not make any decisions based on this information and should seek advice from their financial adviser. Note that InvestAcc does not provide advice of any kind.
March 29th, 2022
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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