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How much can I contribute into a SIPP?

Liberty doesn't stipulate a minimum SIPP contribution that must be paid to the scheme and there is no upper limit on the contributions that can be made, but there is a limit on the amount that is tax relievable. This is calculated against UK relevant earnings for the tax year the contribution is made, and is the greater of £3,600 or 100% of earnings in the tax year the contribution is paid.

These limits are gross, so what you can actually pay into the scheme is the greater of £2,880 and 80% of UK relevant earnings; Liberty then reclaim 20% tax from HMRC.

HMRC have introduced a cap on the amount that can be paid, known as the "Annual Allowance" which is currently set at £40,000. Where the total contributions from you and your employer over a 12-month period exceed this limit, a tax charge of 40% on the excess will be levied on the member and 45% if the client is an additional rate taxpayer.

Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser

 

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