Platinum SIPP

Self-Invested Personal Pensions (SIPPs) were first introduced in 1989 and have evolved into the favoured investment vehicle for individuals seeking more control and flexibility in their retirement planning. Unlike traditional insurance company pension schemes, you are not restricted to the narrow investment funds of any one company and may invest in a wide range of permissible investments within a tax efficient wrapper. Income tax relief is normally allowed on personal contributions and corporation tax relief on company contributions. The fund is exempt from most forms of taxation, allowing tax efficient growth.

Any individual who is resident in the UK under the age of 75 may make contributions to a SIPP and in certain circumstances non-UK residents who have had UK earnings in the previous five years may also be eligible. An individual may be a member of as many pension schemes as they wish and contributions may be paid direct by the member, their employer or by transfer of previous pension plans.

Please note that we only accept applications for new SIPPs from individuals who are a UK resident.

Contributions to a SIPP are unlimited, with the only limits applicable being for tax relief purposes. To obtain tax relief on individual contributions, the maximum that may be paid is the greater of:

• £3,600 regardless of earnings ; or
• 100% of relevant UK earnings

HMRC set an annual limit for tax relief purposes; since the tax year 2023/24 this has been £60,000. In some circumstances, carry forward of unused allowances from the previous three tax years may be possible.

Please note that for tax years 2016/17 to 2019/20, your client’s annual allowance may be subject to reduction due to tapering if their threshold income exceeds £110,000, and they have adjusted income exceeding £150,000. For tax years 2020/21 onwards, threshold income is £200,000 and adjusted net income is £240,000. For tax years 2023/24 onwards, threshold income is £200,000 and adjusted net income is £260,000.

Note that if your client has accessed their pension using a flexible option (e.g. taken any income under flexi-access drawdown or taken an uncrystallised funds pension lump sum) then they will be subject to the reduced Money Purchase Annual Allowance of £4,000 in 2022/23 (£10,000 in 2023/24 onwards), and they will not be able to use carry forward of unused allowances for their money purchase contributions.

The Platinum SIPP has been designed to allow flexibility in both the choice of investment strategy and investment manager.

Funds may be invested in a wide range of investments such as stock market shares, government securities (gilts), regulated collective investment schemes, UK commercial property or land.

Read the full list of Platinum SIPP permitted investments

Upon drawing benefits, the Pension Commencement Lump Sum (also known as Tax Free Cash) and the tax-free element of Uncrystallised Funds Pension Lump Sums is tested against the Lump Sum Allowance. In 2025/26 the standard amount is £268,275 but your client may have a higher or lower amount than this.

At retirement, a number of options exist for the payment of pension benefits, including:

• Pension commencement lump sum – a tax free lump sum equivalent to 25% of the fund value may be paid.
• Secure income – a lifetime annuity may be purchased, providing pension income for the member, this may include a spouse’s benefit, allowing continuation of pension income after the member’s death.
• Flexi-access drawdown – allows income withdrawals without limit, subject to income tax at your marginal rate.
• Uncrystallised funds pension lump sum (UFPLS) – allows a payment from your uncrystallised funds. 25% of each payment is tax free, and the balance is subject to income tax at your marginal rate.
• Capped drawdown (this option may be available if your client held capped drawdown funds on 5th April 2015, and they now want to designate additional funds to capped drawdown under the same arrangement, and they have not exceeded the maximum income limits). Income may be drawn directly from the fund, allowing investments to remain, the level of income available is determined by reference to the fund value and Government Actuary Department (GAD) published rates at the time. This allows a flexible level of income as the member may vary their income from nil up to the maximum permissible in any one year. Benefit limits are assessed every three years up to age 75 and then yearly thereafter.

If death occurs before age 75, beneficiaries have the options of:

• Lump sum up to the available unused Lump Sum and Death Benefit Allowance, tax free if paid within 2 years. Excess is subject to the beneficiary’s marginal rate of income tax.
• Income in the form of flexi access drawdown, paid tax free.
• Annuity purchase, income is tax free.

If death occurs on or after age 75, beneficiaries have the options of:

• Lump sum, taxed at your beneficiaries marginal rate of income tax.
• Flexi access drawdown, income subject to beneficiaries marginal rate of income tax.
• Annuity purchase, income subject to beneficiaries marginal rate of income tax.

Note that pensions are usually paid free from Inheritance Tax, but the UK Government has said that it intends to change this from April 2027.

From 3rd November 2025, all new Platinum SIPP customers will have their own Designated SIPP Bank Account with Metro Bank plc. This account will be used for all payments into and out of their SIPP.

Customers who opened a Platinum SIPP before this date will have a Designated SIPP Bank Account with both Bank of Scotland plc (to receive payments) and Metro Bank plc (to hold funds and make payments).

Read more about Platinum SIPP banking arrangements