SIPP

• A SIPP is a pension you invest yourself. For 2026/27 the standard annual allowance is £60,000, or 100% of your UK earnings if that is lower. Someone with no earnings can still get relief on up to £3,600 gross.
• Contributions receive tax relief. A basic-rate taxpayer who pays in £80 usually has £20 added in the pension. Higher and additional rates can claim the extra relief through Self Assessment.
• The allowance tapers for high incomes. For 2026/27 the threshold income limit is £200,000 and the adjusted income limit is £260,000. The tapered allowance does not fall below £10,000.
• Once you have flexibly accessed a defined-contribution pension, the money-purchase annual allowance is £10,000.
• You cannot usually take money out before age 55. That minimum rises to 57 on 6 April 2028. Up to 25% can normally be taken tax-free, within the lump-sum allowance, and the rest is taxed as income.
• Investments inside the SIPP grow free of UK income tax and capital gains tax. Taking money out is a separate, usually taxable, step.

This is general information, not personal advice. Check GOV.UK for the current rules.