The Financial Services Authority is the independent financial services regulator. It requires us, A J Bell Management Limited, to give you this important information to help you to decide whether our Sippdealxtra SIPP is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.
BASICS
Its aims
To help you save for your retirement, taking advantage of the generous tax
privileges available.
To provide benefits in retirement for you and/or your dependants.
To enable you to transfer your existing pension benefits (with certain
exceptions) into a SIPP.
To enable you to direct how you would like your pension savings to be invested
in a wide range of different types of investments.
To provide lump sum and pension benefits for your dependants following your death.
Your commitment
To pay contributions, either single or regular, within HMRC limits for tax
relief, and/or transfer existing pension benefits into your SIPP. There is
no penalty for ceasing contributions or reducing them within the limits
set out in 'Are there any minimum contribution levels?' below.
To determine the most suitable investment strategy for you.
To regularly review your contribution levels, investment strategy and benefit
levels (under income withdrawal).
You must normally wait until you reach age 50 (55 from 2010) before taking any
benefits.
To comply with the Sippdealxtra Terms
and Conditions and to pay the SIPP Charges
set out on our website.
To notify us immediately of any changes to your personal circumstances which
might affect your SIPP, including your eligibility for tax relief on your
contributions, or to receive benefits.
Risks
Below is a brief summary of some of the risks that you may wish to consider.
Transfers in
By transferring other pension benefits into your SIPP you may be giving up the
right to guarantees in the form of benefits, the amount you will receive and
also the level of increases that will be applied to your pension in future.
You may be giving up the right to receive a terminal bonus on with-profit
pension plans.
A penalty may be applied to your existing pension plan if it is transferred.
We offer an execution-only service and recommend that you seek professional
advice from a suitably qualified financial adviser if you are considering
transferring existing pension benefits into your SIPP.
Investments
The value of investments can fall as well as rise and is not guaranteed. You may
get back less than the amount invested.
Past performance must not be viewed as an indication of future performance.
You will be able to deal in a range of investments each of which carries a
different level of risk.
If you have a smaller fund, or deal excessively, the value of your SIPP may be
eroded and the costs may be disproportionate to the value of your SIPP.
Multiple investments and frequent dealing in small amounts may also result in
excessive costs.
Income Withdrawal
Taking income withdrawals may erode the capital value of your fund, especially
if investment returns are poor and a high level of income is taken; this could
result in a lower income than anticipated in future.
If income withdrawals near, or at, the maximum permitted by HMRC are taken, such
income withdrawals may not be sustainable. The higher the pension you choose to
receive, the higher the probability that your pension may have to reduce in the
future.
If you continue
income withdrawal after age 75 you must take an income between the minimum and
maximum levels specified by HMRC. The maximum income permitted by HMRC will
reduce significantly compared to that before age 75. The benefits payable on
your death after age 75 will be more restricted and the remaining fund on your
death may be subject to significant tax charges, including inheritance tax.
There is no guarantee that annuity rates will improve in the future. If you
choose to purchase an annuity, the level of pension you receive when you
purchase the annuity may be lower or higher than the pension previously being
paid under income withdrawal and/or the annuity you could have purchased
previously.
Under income withdrawal you will not receive the benefit of the cross subsidy
from the funds of annuitants who have died that you would under an annuity.
General
The tax benefits and governing law for SIPPs may change in the future.
Your benefits are dependent upon a number of factors. Although not a complete
list, these factors include future contribution levels, the age at which you
commence benefits and external influences such as investment returns,
inflation, interest rates, annuity rates and charges.
The investment returns on your fund may be less than those shown in any
illustrations you may receive from us, or obtain yourself using our
calculations tools.
The SIPP is offered on an execution-only basis without pensions advice. The
Sippdealxtra SIPP and/ or investment services described may not be suitable for
you. If you need advice, you must consult a suitably qualified financial
adviser.
What is a SIPP?
It is a personal pension that allows you to invest in a wide range of
investments (see 'What can I invest in?' below) through a stockbroker
on our panel, chosen by you.
Can I have a SIPP?
You can have a SIPP regardless of your employment status. You can take
out a SIPP if you are:
employed;
self employed;
a pensioner;
a carer;
in full time education; or
unemployed
A SIPP can be established for a child, under the age of 18, by a parent or
legal guardian.
What are Stakeholder pensions?
Stakeholder pensions are relatively simple pension plans for which the
Government has set minimum standards to be met by providers covering areas such
as charges, minimum payment levels and terms and conditions.
Stakeholder pensions are generally available and may meet your needs at least as
well as a SIPP. If you are in any doubt about the suitability of a SIPP you
should contact a suitably qualified financial adviser.
Can the SIPP be used to contract out of SERPS/ the State Second Pension?
No.
What are the SIPP charges?
The SIPP charges are published in the
Charges & Rates
section of our
website. Stockbroker charges are available from your chosen stockbroker.
How do I apply?
Using our online application process, or alternatively by downloading a PDF
version of our paper based application form.
Once your application has been accepted, we will pass your details to your
stockbroker, who will contact you to confirm the opening of your investment
account.
We will send you a unique username and password, to allow you to access the
secure area of our website.
Once your SIPP has been established, your investment account with your
stockbroker has been opened and we have received cleared funds, you will be in
a position to transfer cash to your stockbroker to commence dealing.
CONTRIBUTIONS
Who can pay contributions into my SIPP?
You can pay personal contributions into your SIPP. In addition,
contributions can be paid by another person on your behalf (e.g. by your
spouse, parent or grandparent).
All contributions paid by you, or on your behalf (except those paid by an
employer) are payable net of basic rate income tax (20% for 2008/09).
We will then reclaim the basic rate income tax from HMRC. As an example, if
you pay a net contribution of £800 then we will reclaim £200 from HMRC and
credit it to your SIPP cash account.
If you are employed, your employer can also pay contributions into your SIPP.
All employer contributions are payable gross.
Single lump sum contributions can be paid by cheque or electronic transfer.
Regular monthly contributions must be paid by direct debit.
Once your SIPP is established you can arrange to pay future single contributions
and/or increase/decrease your regular contributions at any time, subject only
to the minimum contribution levels described below.
We will not accept any contributions after you reach age 75.
Are there any minimum contribution levels?
The minimum single contribution is £1000 (gross). If a transfer payment is to be paid into your SIPP there is no requirement to pay contributions.
What If I am entitled to enhanced protection?
It is
very important
to note that if you have registered with HMRC for enhanced protection (for
pension rights built up before 6 April 2006) the payment of any contribution to
your SIPP will lead to the loss of this protection.
Do I get tax relief on my contributions?
For each tax year, you will get tax relief on contributions paid by
you, or on your behalf, of up to the
higher
of:
£3,600 (the Basic Amount); and
100% of your UK earnings.
If you do not have any UK earnings you can still pay a contribution of up to
£3,600 a year and receive basic rate tax relief (your contribution will be
payable net of basic rate income tax).
You will receive tax relief at your highest rate of income tax on all member
contributions paid into your SIPP either by you, or on your behalf. We will
reclaim basic rate tax for you from HMRC and credit it to your SIPP cash account and you can claim any higher rate relief via self assessment.
If you are paying contributions on behalf of a child, or someone else (e.g. your
spouse), then we will still reclaim the basic rate tax from HMRC and credit it
into their SIPP cash account. You will not be eligible to claim higher
rate tax relief on these contributions.
Tax relief will be credited to your SIPP account after between 6 and 11 weeks, depending upon when your contribution is paid.
We will only accept contributions up to the limit for tax relief referred to
above. You must tell us within 30 days if you are no longer entitled to tax
relief on your contributions.
Any contributions from your employer do not count against the limit for tax
relief referred to above. Your employer will normally receive tax relief on the
contributions it pays on your behalf and you will not normally be taxed on the
contributions.
How can contributions be paid?
Contributions can only be paid by cheque, direct debit or electronic transfer.
If you wish to pay contributions by electronic transfer, please contact us and we will notify you of our requirements.
Can I pay contributions in the form of shares or other investments?
No.
What is the annual allowance for contributions?
The annual allowance is the mechanism by which HMRC restrict tax relief
on large contributions.
The annual allowance is £235,000 for 2008/09 and will increase each year as set
out below:
Annual allowance
Year
Allowance
2010/11
£255,000
It may increase in future years but this is not guaranteed.
If for any 'pension input period' ending in a tax year, the total of:
contributions to registered pension schemes paid by you, or on your behalf
(including any paid by an employer); and
the increase in the value of your benefits under any final salary schemes
exceeds the 'annual allowance', you will have to pay a tax charge of 40% on the
excess. A factor of £10 per £1 p.a. of pension will be used to value the
increase in benefits under a final salary scheme.
For the purposes of your SIPP, the pension input period will always coincide
with the tax year i.e. end on 5 April, unless you notify us that you wish it to
end on a different date in any tax year. If you think that you may be affected
by the annual allowance you should consult a financial adviser.
There will be no test against the annual allowance in the year in which you take
all of your remaining benefits under your SIPP.
What happens if I change jobs or become unemployed?
You will be able to continue paying contributions, subject only to the limits on
the amount of contributions that will receive tax relief outlined above.
TRANSFERS
Can I transfer my existing pension benefits into my SIPP?
Yes. You can transfer benefits from any UK registered pension scheme
into your SIPP.
Your SIPP cannot however accept any protected rights, or 'contracted-out',
benefits. You will need to contact the administrator of the transferring scheme
if you are unsure whether this applies.
You can transfer your existing pension benefits into a SIPP even if you have
commenced income withdrawal (unsecured pension or alternatively secured
pension) under the transferring scheme.
If income withdrawal has commenced under the transferring scheme, the value of
those benefits will be held separately from the other benefits under your
SIPP and will be subject to the same minimum and maximum income limits and
review period as under the transferring scheme.
Please note that you will be responsible for arranging the transfer from the
transferring scheme.
Can I transfer investments held in another self invested personal pension into my SIPP?
Yes, although certain investments cannot currently be transferred e.g.
property and insurance company bonds.
Any investments transferred 'in-specie' must be an acceptable investment for
your stockbroker. See 'What can I invest in?' below.
Please e-mail us details of your portfolio of investments under the transferring
scheme and we and your stockbroker will then advise you of our further
requirements. Clearly if you are transferring from another SIPP provider, where
the investments are currently held with your stockbroker, then the transfer
will be far more straightforward.
How do I transfer my existing pension benefits into my SIPP?
By completing a Transfer
Form and following the instructions set out on the form.
Can I transfer my SIPP to another pension plan?
You can transfer the value of your SIPP to another UK registered
pension scheme, at any time.
If you have already designated some or all of your SIPP to provide unsecured
pension, or alternatively secured pension, then the full value of those
benefits must be transferred at one time. If you have uncrystallised funds
under the SIPP you can choose to transfer all, or only a part, of those funds
to another pension scheme.
If the transfer is to an overseas scheme a check against your lifetime allowance
must be carried out before the transfer payment is made (see 'How does the lifetime allowance work?' below) and so it is possible that a lifetime allowance charge may
apply.
The transfer can either be in the form of a cash payment (in which case you will
have to sell all of the investments held under your SIPP before the transfer is
completed) or by an in-specie transfer of the SIPP assets to the receiving
scheme.
The transfer will always be made direct to the trustees or administrator of
the receiving scheme.
INVESTMENTS
What can I invest in?
The investment range available will be determined by your stockbroker,
subject to the agreement of Sippdealxtra and compliance with HMRC rules. The
range will typically include:
UK quoted stocks and shares, gilts and debentures;
Shares quoted on the Alternative Investment Market (AIM);
Stocks and shares quoted on an HMRC recognised overseas stock exchange;
Unit trusts, investment trusts and open ended investment companies (OEICS);
Futures and options related to shares traded on an HMRC recognised stock
exchange; and
Cash deposits.
Cash can only be held with Sippdealxtra in a designated Bank of Scotland cash
account opened for your SIPP, or in a client account opened with your
stockbroker. Cash can be moved between the Bank of Scotland account and your
stockbroker using our online cash movement facility.
You can only invest in assets that can be held in nominee by your stockbroker.
Can I use any stockbroker?
You can only use the services of a stockbroker on our panel. This is because we have invested a considerable amount of time and effort creating IT
links and formalising the legal relationship between Sippdealxtra and the panel stockbrokers. We welcome any approaches from other stockbrokers
who wish to join our panel.
How do I obtain a valuation of my SIPP?
You can obtain a valuation of your portfolio by contacting your stockbroker.
Do I pay tax on any dividends or gains within my portfolio?
No. There is no tax to pay on any dividends or capital gains. Tax deducted at
source from dividends cannot, however, be reclaimed.
Are there any restrictions on what I can invest in?
Yes. Your SIPP cannot invest directly in:
commercial or residential property;
insurance company bonds;
private (unquoted) company shares;
personal chattels (e.g. works of art, cars etc.);
loans; or
any activity that could be regarded as trading.
Also, you cannot borrow money under your SIPP for the purpose of investment.
The A J Bell Group does offer a SIPP with a wider range of investment options
than Sippdealxtra, including commercial property. If you are interested please
visit the
A J Bell Group website.
MEMBER BENEFITS
Is there a limit on the amount of my benefits?
There is no limit on the benefits that may be provided for you under
your SIPP. However, if the total value of your pension savings, under all
registered pension schemes, exceeds the 'lifetime allowance' (£1.65m for
2008/09) then there will be an additional tax charge, called the lifetime
allowance charge, on the excess. For more information on the lifetime allowance
and the lifetime allowance charge please see 'How does the lifetime allowance work?' below.
When can I take my benefits?
You can commence benefits, irrespective of whether or not you continue
to work, at any time between age 50 (55 if benefits commence after 5 April
2010) and age 75. It may be possible to commence benefits earlier if you are in
serious ill-health.
If, as part of a block transfer, you transfer pension rights to your SIPP
from another registered pension scheme, under which you are entitled to
commence benefits earlier than age 50 (i.e. because you are in a specialised
occupation for which a lower minimum pension age had previously been agreed by
HMRC), you may be able to take benefits from that earlier age.
How do I commence benefits?
You may choose to take benefits from all, or only part of the
uncrystallised (unvested) funds under your SIPP. This will allow you to phase
your benefits to suit your personal circumstances.
You must complete a Benefit
Form to tell us how you want those benefits to be paid. The form will
also ask you about your available lifetime allowance and any protection you
have for benefits built up before 6 April 2006.
Can I have a lump sum?
Yes. You can have a pension commencement lump sum up to the lower of:
25% of the value of the fund designated to provide your benefits; and
25% of your unused lifetime allowance.
This lump sum is currently payable tax-free.
If you have registered with HMRC for enhanced or primary protection, or have a
protected lump sum arising from a block transfer to your SIPP, then you may be
entitled to a pension commencement lump sum of more than 25%. We will ask you
to provide details of any protected lump sums on the Benefit Form.
You cannot take a pension commencement lump sum with the intention of recycling
some, or all of it, either directly, or indirectly, to fund a significant
increase in pension contributions. This is because the lump sum will be treated as an
unauthorised payment. You would be taxed on the payment at between 40% and 55%.
Your pension fund would also be subject a further tax charge of between 15% and
40% (depending how much of the tax charge you had paid).
What about pension benefits?
When you receive your pension commencement lump sum, the remaining fund
will be designated to provide you with a pension in one of two ways:
Unsecured Pension
Your unsecured pension fund remains invested and you draw an income from the
fund (income withdrawal), up to the maximum level set by HMRC. There is no
minimum level of income, so you can elect to receive a "nil" pension, if you
wish.
You can choose to take a regular income and/or one-off pension payments to suit
your individual circumstances.
The maximum level of annual income is set at 120% of the Government Actuary's
Department's (GAD) relevant annuity rate, based on your age and the value of
the unsecured pension fund at the date funds are first designated to provide
unsecured pension and at each subsequent review.
The maximum income level will be recalculated every five years. You can choose to
designate additional uncrystallised funds to your
unsecured pension fund at any time and this will normally trigger an immediate review of
the maximum income level and a check against the lifetime allowance (see
'How does the lifetime allowance work?' below).
You can elect to have the maximum income level reviewed at each anniversary of the date funds were first designated to provide unsecured pension. You must make the election in advance of the relevant anniversary.
You can choose to purchase a lifetime annuity with some, or all, of your
unsecured pension fund at any time. The purchase of an annuity will
trigger a review of the maximum income level and a further check against
the lifetime allowance.
We will not allow the purchase of short term annuities to provide income from
your unsecured pension fund.
Unsecured pension can continue until you reach age 75 by which time you must
have secured all of your pension benefits under your SIPP, by either converting
your unsecured pension to alternatively secured pension or by the purchase of a
lifetime annuity. Alternatively secured pension is a continuation of income
withdrawal beyond age 75 (see 'What is alternatively secured pension?' below).
A further lifetime allowance check will be carried out before an unsecured
pension fund is:
used to purchase a lifetime annuity before age 75; or
converted to alternatively secured pension at age 75
(unless the unsecured pension commenced before 6 April 2006 and no further funds have been added to
that unsecured pension fund on, or after, that date).
The value crystallised for lifetime allowance purposes will be the value of the
remaining unsecured pension fund less the amounts previously crystallised and
designated to unsecured pension.
It is important to note that any unsecured pension funds transferred in from
other registered pension schemes will be kept separate from any other funds
held for you under the SIPP and will be subject to their own limits and review
periods.
Purchasing a lifetime annuity involves passing the value of your SIPP
to an insurance company of your
choice who in return will provide you with a regular, taxable, income
throughout your life.
The annuity available will depend on the value of your fund and the annuity
rates at the date of purchasing the annuity.
The annuity income may increase each year; may be guaranteed for up to ten years
(i.e. paid irrespective of whether you are alive) and may continue, normally at
a reduced level, to your surviving spouse or dependant.
If an annuity is purchased, you will cease to have any involvement with the
investment of your pension fund. This may be a price worth paying if security
of income is an important issue.
What is alternatively secured pension?
Alternatively secured pension is a continuation of income withdrawal
from age 75. As with unsecured pension, your SIPP fund will remain invested and
you will be able to choose how much income to withdraw each year between the minimum and maximum limits set by HMRC.
For alternatively secured pension, the minimum income which must be taken each
year is 55% of the GAD relevant annuity rate for a 75 year old. The maximum
income that can be withdrawn is 90% of the GAD relevant annuity rate for a 75
year old.
The minimum and maximum income levels are reviewed annually based on the value
of the fund at the review date but using the GAD relevant annuity rate for a 75
year old, regardless of your age at the time.
You can choose to purchase a lifetime annuity with your alternatively secured
pension fund at any time.
Before selecting alternatively secured pension you should read the 'Income withdrawal' section under 'Risks' above.
Do I pay tax on pension payments?
All pensions paid to you will be subject to income tax under PAYE. We
will deduct the tax due before paying your pension and will account for it to
HMRC.
If a lifetime annuity has been purchased, the insurance company will be
responsible for the payment of income tax.
How does the lifetime allowance work?
The Government has set the standard lifetime allowance at £1.65m for
2008/09 and it will increase as follows:
Lifetime allowance
Year
Allowance
2009/10
£1.75m
2010/11
£1.8m
It may increase in future years, but this is not guaranteed.
Each time new benefits commence ("crystallise") a portion of your lifetime
allowance is used up.
Once you have used up your lifetime allowance, any benefits paid above the
allowance will be subject to the lifetime allowance charge. If excess funds are
used to provide a taxable pension, the lifetime allowance charge is 25% of the
excess above the lifetime allowance. Alternatively if excess funds are paid as
a lump sum, called a lifetime allowance excess lump sum, the lifetime allowance
charge is 55%. We will deduct this tax charge from your fund and pay it to HMRC
before paying your benefits.
If you have built up substantial pension savings before 6 April 2006 and have
registered for enhanced and/or primary protection ('transitional protection')
with HMRC then this may reduce, or eliminate, any lifetime allowance charge
that would otherwise be payable.
DEATH BENEFITS
What happens if I die before age 75?
Uncrystallised funds
The scheme administrator will decide who will receive benefits and the form of
the benefits, in its absolute discretion. However, it will take into account
any wishes you have expressed through the completion of a death benefit
nomination. You may complete a new nomination at any time.
Death benefits will normally be paid as a lump sum but pensions may be provided
for a spouse and/or dependant, either under income withdrawal or by annuity
purchase.
Lump sum payments on death are normally free of any inheritance tax but we
cannot guarantee that this will be the case. You must consult a financial
adviser if you are unsure.
Unsecured pension funds
The scheme administrator will decide who will receive benefits and the form of
the benefits, in its absolute discretion. However, it will take into account
any wishes you have expressed through the completion of a death benefit
nomination.
The value of your fund can be used to pay benefits in the form of:
a lump sum, subject to deduction of a 35% tax charge; and/or
applied (with no 35% tax deduction) to provide a pension for your spouse and/or dependant, either by way of an annuity purchase or under income withdrawal.
If you die after an annuity has been purchased then the benefits payable, if
any, will be determined by the terms of the annuity contract.
What happens if I die after age 75?
Alternatively secured pension
If your pension is being paid under alternatively secured pension then
the full value of your alternatively secured pension fund will be applied to
provide pension benefits for your surviving spouse or dependants, either in the
form of income withdrawal, or through the purchase of an annuity.
The scheme administrator will decide who the pension will be paid to but will
take into account any wishes you have expressed by completing a nomination.
If you do not leave a surviving spouse, or dependant, then the value of your
fund may be paid to a charity nominated by you for this purpose. Again, you can
complete a nomination to indicate which charity you would wish to receive
benefits.
Any funds paid to a charity, or paid out in pension benefits to your spouse, or
dependants, will be exempt from inheritance tax (IHT).
If on your death you have no dependants and have not nominated a charity to
receive any remaining fund, then the scheme administrator may be able to pay a
lump sum to your family or other beneficiaries. This payment will be an
"unauthorised payment" and will be subject to very significant tax charges,
including IHT.
We will deduct any IHT and any taxes payable by the scheme from your fund and
pay them to HMRC before paying any death benefits. Any other tax charges will
be payable by the recipient.
If you are considering ASP, you should consult a suitably qualified financial
adviser for more information on the benefits that can be paid on your death
and the tax charges payable.
Lifetime annuity
If you have purchased an annuity then the benefits payable, if any, will be
determined by the terms of the annuity contract.
MISCELLANEOUS
Your right to change your mind
You have a legal right to cancel your SIPP, if you change your mind. You will have 30 days from the date that you receive our letter confirming the establishment of your SIPP to cancel, if you wish.
Cancellation rights will also apply to any additional transfer payments received. You will have 30 days from the date that you receive our letter acknowledging the transfer to exercise your right to cancel.
You may exercise your right to cancel by writing to us at:
Sippdealxtra,
A J Bell Management Limited,
Trafford House,
Chester Road,
Manchester, M32 0RS.
You must state whether you wish to cancel your SIPP, or whether you only wish to cancel a specific transfer. We will acknowledge your notification and confirm what additional information, if any, is required.
Effects of cancellation
If you do cancel your SIPP then we will repay any contributions we have received to the person who paid them.
If you cancel after a transfer payment has been paid to your SIPP we will attempt to repay the amount received to the transferring scheme. However, the transferring scheme may refuse to accept the repayment, or only accept it on different terms to those applying prior to the transfer, in which case we will require your instructions on whether to pay the amount to another registered pension scheme. If we have not received your instructions within the 30 day period we reserve the right to take reasonable administration charges from your SIPP until such time as we are able to make the transfer to another registered pension scheme.
If you do not exercise any of your cancellation rights you will not be able to cancel your SIPP, or any relevant transfer, or your choice to take USP or ASP benefits at a later date. You will, however, be able to transfer your benefits to another registered pension scheme or, if applicable, purchase an annuity.
Lapsing your cancellation rights
You will not normally be able to make any investment until the 30 day cancellation period has ended. However, if you wish to make an investment within this period you can choose to lapse your cancellation rights. If you do lapse your cancellation rights then you will not be able to cancel your SIPP and have a refund of contributions, or have the transfer payment repaid to the transferring scheme, after the effective date of the lapse of your rights.
You may lapse your cancellation rights by giving us notice in writing to the address shown above, or by giving instructions to make an investment within the 30 day cancellation period. Please consider carefully before giving us any such investment instructions because by doing so you will be lapsing your cancellation rights and you will not be able to cancel your SIPP after those instructions have been received.
Cancelling USP or ASP
On the first occasion that you choose to take unsecured pension (USP) or alternatively secured pension (ASP) you will have the right to cancel the option within 30 days of the date that you crystallise benefits (USP) or your 75th birthday (ASP).
If you do cancel you will have to return any pension commencement lump sum or income that has already been paid to you. For ASP you will then have to purchase an annuity or transfer the fund to another pension provider.
What is the Sippdealxtra SIPP?
If you establish a SIPP with Sippdealxtra you will become a member of
the Sippdeal e-sipp, a personal pension scheme registered with HMRC under
Chapter 2 of Part 4 of Finance Act 2004.
The scheme is governed by a trust deed and rules, as amended from time to time.
This Key Features document summarises the main provisions of the rules and of
the HMRC regulations that apply to
registered pension schemes. However, in the event of any discrepancy between
the Key Features and the trust deed and rules the trust deed and rules will
prevail. A copy of our Scheme Rules can be downloaded from our website as a PDF file.
Please read these Key Features and the Sippdealxtra Terms
and Conditions carefully before completing the application form.
Will you pay any benefits not described?
These Key Features describe the main forms of authorised payments that
can be paid by a registered pension scheme. We cannot be compelled to make any
payment that is not authorised by Finance Act 2004.
We are required to report any unauthorised payments to HMRC. If an unauthorised
payment is made, then you, or the person who receives the payment, will be
subject to an additional tax charge of between 40% and 55% of the payment. Your
SIPP will also be subject to a further tax charge of between 15% and 40% of the
payment, depending on the amount of the tax charge that you have paid. In
extreme circumstances, HMRC may de-register the SIPP in which case a further
tax charge of 40% of the value of the SIPP will be payable to HMRC.
How secure is my money?
A J Bell Management Limited is the Scheme Administrator of the Sippdeal
e-sipp and is responsible for the day to day administration and management of
the scheme. Sippdeal Trustees Limited, a wholly owned subsidiary of A J Bell
Management Limited, is the trustee of the scheme.
A J Bell Management Limited is part of the A J Bell Group, one of the UK's leading SIPP administrators with assets under trusteeship exceeding £5bn.
A J Bell Management Limited is authorised and regulated by the Financial Services Authority ("FSA"). Sippdeal Trustees Limited does not conduct
any regulated activities and is, therefore, not regulated.
Bank of Scotland is the provider/establisher of the Sippdeal e-sipp. The Bank
will satisfy any statutory obligations that it may have from time to time, as
provider/establisher of the Sippdeal e-sipp.
Your stockbroker is also authorised and regulated by the FSA. All
investments will be held in the name of the trustee of the scheme or your
stockbroker's nominee.
Cash will be held in an account set up specifically for your SIPP with Bank of Scotland in the name of Sippdeal Trustees Limited unless it is transferred to be held in an account with your chosen stockbroker.
Are there any compensation arrangements covering my SIPP?
Yes. The Financial Services Compensation Scheme (FSCS) has been set up to deal
with compensation, if firms are unable to meet claims made against them.
The amount of compensation available under the FSCS depends on the type of
business and the circumstances of the claim. Further information about the
compensation arrangements is available from the Financial Services Compensation
Scheme
(www.fscs.org.uk).
Can I see a copy of the terms and conditions?
A copy of the Sippdealxtra Terms
and Conditions can be downloaded from our website as a PDF file.
You must read them carefully before signing your application form.
Can Sippdealxtra provide me with advice?
Sippdealxtra, A J Bell Management Limited and Sippdeal Trustees Limited
cannot provide any advice in relation to:
the suitability of a SIPP in your circumstances;
the level of contributions you can, or should, pay;
whether you should transfer existing pension benefits into your SIPP;
which stocks and shares to buy/sell;
whether to buy an annuity or elect for income withdrawal;
whether, or not, you should apply for transitional protection for pension rights
built up before 6 April 2006; or
tax or financial services related matters.
If you need any assistance then you must contact a financial adviser. Your
adviser will give you details about the cost of advice.
What if I have any further questions?
You must contact us at the address shown below or via our
website.
What if I have a complaint?
Please write to the Compliance Officer in the first instance at:
A J Bell Management Limited,
Trafford House,
Chester Road,
Manchester,
M32 0RS.
If you are not satisfied with our response, you may refer your complaint to the Pensions Ombudsman, if your complaint concerns the administration of your SIPP.
Help is also available from The Pensions Advisory Service (TPAS) who can advise you on how to complain and may be able to sort the matter out, without the need for the Ombudsman to get involved. The address for both the Pensions Ombudsman and TPAS is as follows:
The Financial Ombudsman Service
South Quay Plaza,
183 Marsh Wall,
London,
E14 9SR.
Tel: 0845 080 1800
Making a complaint will not affect your right to take legal proceedings.
IMPORTANT
The information contained in this Key Features document is provided based on our
understanding of current law, practice and taxation which may be subject to
change.
Full details of the legally binding contract between you and A J Bell Management
Limited are included in the Sippdealxtra Terms
and Conditions .
The law of England and Wales will apply in all legal disputes.
If you would like a copy of this or any other item of our literature in large print, Braille or in audio format, please contact us on 0870 755 7333 or by e-mail enquiry@sippdealxtra.co.uk
All our literature and future communication to you will be in English.
Sippdealxtra is a division of A J Bell Management Limited, part of the A J Bell Group.
Telephone: 0870 755 7333 Fax: 0870 240 0513 E-mail: enquiry@sippdealxtra.co.uk
A J Bell Management Limited is registered in England and Wales at Trafford House, Chester Road, Manchester M32 0RS. Registered number 3948391. VAT number 759 3531 03.
Authorised and regulated by the Financial Services Authority. (number 211468). Terms and ConditionsLegal PolicyRisk Warnings
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