Glossary · Pensions
SIPP (Self-Invested Personal Pension)
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Definition: A personal pension that lets you choose your own investments — funds, shares, ETFs, gilts, commercial property — within HMRC's rules.
Tax relief is added to contributions at your marginal rate (basic-rate at source, higher-rate reclaimed via Self Assessment or PAYE). Standard annual allowance is £60,000; tapered for very high earners. The MPAA reduces it to £10,000 once you flexibly access benefits.