Accounts
SIPP (Self-Invested Personal Pension)
A SIPP is a UK pension you control, with tax relief on the way in and pension tax rules on the way out.
A self-invested personal pension lets you choose the investments — funds, shares, some other assets — instead of accepting a default scheme menu. Contributions generally attract UK pension tax relief, and growth inside the SIPP is not taxed year by year the way a taxable account is. Withdrawals are constrained by pension age rules, and most income taken out is taxed as income.
The trade against an ISA is access versus relief. The ISA is flexible and funded from taxed income. The SIPP is locked up and funded with a tax boost. Which one fits depends on when you need the money and on your tax rate now versus later. Limits and the age rules move with legislation. This is education, not a recommendation to open an account.
Formula
A SIPP is a UK personal pension you direct; contributions receive pension tax relief and withdrawals are taxed under pension rules.
Live example
Apple Inc. (AAPL) last printed at $345.33 with a market cap of $5.04T. If this symbol is a fund, the price is the tradable quote. Compare it with the holdings' value and the expense ratio before treating a one-day move as the return.
Related
ISA (Individual Savings Account) · ETF (Exchange-Traded Fund) · Index Fund
See it on a list: best stocks · screener
Questions
Can I hold individual stocks in a SIPP?
Yes, on most platforms, alongside funds. Dealing fees and the pension wrapper are separate decisions.
Is a SIPP the same as a workplace pension?
Both are pensions. A workplace scheme is arranged by an employer and often includes an employer contribution. A SIPP is one you open and direct yourself.