Any individual can pay contributions into The Pointon York SIPP and receive tax relief if they are a 'relevant UK individual'. A relevant individual is someone who
- has taxable UK earnings, or
- is resident in the UK or
- has been resident in the UK in one of the last five tax years
An individual can also establish a SIPP whilst contributing to an occupational pension scheme at the same time.
Contributions made to a SIPP qualify for tax relief at the highest marginal rate. This means that for every gross contribution of £100, a higher rate tax payer could receive up to £40 in tax relief.
For basic rate tax payers, claiming 20% tax relief, the actual net cost of a £100 contribution is only £80.
There is no limit on the level of contributions that can be made to a SIPP although HM Revenue & Customs do limit the level that can attract tax relief.
A member can contribute up to the level of their UK taxable earnings (called ‘relevant UK earnings’) every tax year and get full tax relief.