SIPP – Advantages

The Benefits of Being a Registered Pension Scheme

Being an HMRC registered pension scheme for a UK pension fund means it enjoys the following tax advantages:

  • no tax on income, other than equity dividends
  • the ability to reclaim some tax deducted at source on income
  • no tax on capital gains

In addition, contributions should attract tax relief and lump sum benefits payable on death and at retirement are usually free of all taxes (including inheritance tax on lump sums payable on death).