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Frequently Asked Questions

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Frequently Asked Questions

Applying

 

Charges

 

Contributions

 

Transfers

 

Contracting out

 

Retiring

 

Death

 

Further Information

 

Applying

How do I apply for The Pointon York SIPP?

Before you apply, you should ensure that you have read and understood the Key Features, Terms and Conditions and Fee Schedule of your chosen Pointon York SIPP.  Pointon York does not give advice and will only administer your SIPP on an execution only basis.  To download an application pack, to complete and return, please click here.

Pointon York does not give advice and any information contained on this website should not be regarded as personal advice.  We strongly recommend before you make any financial decision that you seek advice from a professional adviser. 

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Charges

 
Our charges are for the administration of your self invested personal pension, should you require financial advice then this would be agreed separately with your adviser.  Each of our SIPP products has a separate fee schedule, to view click here.
 
 

 

We charge an annual fee to cover the costs of the day to day administration of your SIPP.  This includes claiming basic tax relief from HMRC on personal contributions, maintaining your SIPP records and updating our systems, complying with HMRC and other regulatory requirements, tracking investments and providing you with an annual valuation and pension projection on retirement.

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Contributions

Who else can contribute into The Pointon York SIPP?

Any individual may contribute into your self invested personal pension on your behalf, and any such contributions would be treated as if you had made them under the tax rules. If you have registered pension rights held on 5 April 2006 for Enhanced Protection, Fixed Protection 2012 or 2014 or Individual Protection with HMRC, you will lose that protection if contributions are made to your SIPP.

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Can my employer make contributions to The Pointon York SIPP?

Yes, your employer can make contributions to your SIPP by Standing Order. Employer contributions are paid gross (before tax and National Insurance), so you do not receive basic rate tax relief. There is a separate section in the application form that you will need to complete.

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How much can I contribute?

For tax year 2014/2015 the maximum total contributions to all pension schemes by employer, individual any third parties, will be £40,000. Any payments above £40,000 may incur a tax charge, although there is a possibility that you could carry forward unused allowance from previous years.

If you have no earnings or earnings less than £3,600, then you can still make gross contributions of up to £3,600 in that tax year and benefit from tax relief on your contributions.

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Is there a minimum contribution?

Although the majority of our SIPPs do not carry a minimum investment, it is advisable to look at your long term financial needs, with your adviser, to ascertain how much you need to contribute to your SIPP.  You will also need to take into consideration fees that you will need to pay from your SIPP.  We do require that all Individual and Single Investment SIPP members have £1,000 in their SIPP bank account at all times and our eSIPP carries a minimum contribution of £5,000. 

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What happens if I can't make contributions?

If you need to take a break from making payments into your SIPP, you can take a contribution holiday.  During this time you should bear in mind that we will continue to take our charges, so your pension pot won't grow as much as usual.  It could even mean that the value of your pot falls if our charges account for more than the growth in the funds you invest in.
 

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How do I receive tax relief on my contributions?

We will automatically collect the basic rate tax due on your contributions; therefore you should make your payments net of basic rate tax. For example, at the current rate (20%), if you want to make a contribution of £1000, you should only pay £800 into your SIPP and we will work with HMRC to make it up to £1000. It is the gross contribution (in this case £1000) which will count towards your Annual Allowance.

If you are a higher rate tax payer in the tax year you contribute, you may (where permitted) personally claim back the difference between any higher and basic tax rate due on your contribution. You can do this directly from HMRC through your Self-Assessment tax return.

If your total pension contributions are more than £40,000 the amount of tax relief that you can claim back may be restricted. Please seek financial advice if you think this may affect you.

You may not claim back tax relief on any contributions in excess of your earnings.

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Transfers

How do I transfer my pension(s) to The Pointon York SIPP?

Firstly, you should check whether it is beneficial to transfer your existing pension to The Pointon York SIPP and ensure that you are aware of any penalties you may be charged, or any bonuses or guarantees you may lose by transferring.

Secondly, before you transfer monies from another pension scheme please ensure you have read and understood the Key Features, Terms and Conditions and Fee Schedule for your chosen Pointon York SIPP.

When you make an application please ensure that you complete and sign the relevant transfer paperwork, which will enable us to contact the existing provider to arrange the transfer.

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Contracting out

What is contracting-out?

Contracting out is when you opt to exchange your entitlement to the State Second Pension for National Insurance rebates into your chosen pension scheme. You may not contract-out through your SIPP, however any Protected Rights that you have built up previously by contracting-out can be held within the scheme.

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Retiring

 
You can decide to take your pension with Pointon York any time after age 55.

 

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What are my retirement options?

When you retire you can use the savings that you have accumulated in your SIPP and any other pensions that you have built up elsewhere to provide you with an income for the rest of your life. There are different ways that you can do this, which means you’ll need to make some decisions about which option will suit you best. We recommend that you seek financial advice to ensure you make the right decision.

Tax-free lump sum

When you decide to retire, you can normally take up to 25% of the value of your pension pot as a cash lump sum without paying any tax. It’s up to you how you take the rest of your fund as a pension. Your options are set out below.

Annuity

You can buy a guaranteed retirement income known as an annuity from a UK insurance company. You will be told from the outset how much retirement income you can buy with your pension savings, and this amount is guaranteed for life with no additional ongoing charges.

Income Drawdown

Alternatively you can take income drawdown direct from your SIPP to provide a retirement income while keeping your pension invested as you choose. Your pension has the potential to increase or decrease in value during retirement so your income is not guaranteed. You can also draw these benefits gradually through phased retirement.

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Death

What happens on my death?

It's not a nice thought, but it's good to know that your savings can be distributed according to your wishes.  Your pension can normally be paid out to your nominated dependents, which is decided via an Expression of Wish form.

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Further Information

Where can I find further information?

There are a number of organisations that can provide you with more information.  Click here to download our further information sheet or why not visit our technical centre or view our Jargon Buster.

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Pointon York SIPP Solutions is a division of Curtis Banks Limited authorised and regulated by the Financial Conduct Authority.