Pensions

International SIPP

A Self Invested Personal Pension (SIPP) is a very flexible pension plan that allows you to take control of your own investment decisions when saving for your retirement. They provide greater choice and flexibility regarding investments, tax benefits and currency choice.

What is an International SIPP?

If you no longer live in the UK, an International SIPP allows you to transfer and consolidate benefits from UK-registered pension schemes easily and efficiently to your new country of residence, while still protecting you under UK regulations.

It’s possible to take regular or variable income using an International SIPP with flexi-access drawdown while still remaining invested. Also, purchasing an annuity is not mandatory.

For non-UK residents or British expats, an International SIPP enables expats to hold assets that are appropriate for international clients and in other currencies, yet still meet the key regulatory requirements of the Financial Conduct Authority (FCA) in the UK.

Benefits of an International SIPP

Most expats are able to open an International SIPP, whether employed, self-employed, not working or retired. What is important to note is that where you have your main home will determine the tax treatment of contributions into the pension scheme.

If you’re still a UK taxpayer, you’ll get pension contribution relief on the money set aside for retirement; and if you’re a tax resident elsewhere, you can still have a SIPP but without tax relief on your contributions. Importantly, in either scenario, you can drawdown in any country but it’s important to check what Dual Taxation Agreements (DTA) are in place with the UK and the country that you are residing in with your financial adviser.

If you eventually plan to return to the UK, an International SIPP may be still suitable for you. However, if you’re planning to retire abroad, a SIPP may not be the most appropriate pension solution and a QROPS may be more suitable.

Investment Options

Which are the most appopriate for you?

International SIPP v. QROPS

Like an International SIPP, a QROPS (Qualifying Recognised Overseas Pension Scheme) is aimed at expats with existing UK pension rights. The main difference is QROPS are typically more suited to those who have a large pension pot (i.e. close to the Lifetime Allowance, currently £1,073,100 for 2022/2023) as they may help mitigate future tax liabilities for exceeding the allowance when you come to draw benefits.

The Process

How to transfer an existing pension into an International SIPP

The process of transferring an existing pension into an International SIPP is relatively straightforward, but it’s imperative that the transfer is done correctly and cost-efficiently into a recognised and approved scheme.

Harrison Brook is an independent financial advisory company with transparent fees and no commission, fully regulated to provide cross-border financial advice. Fees are always explained clearly from the outset to allow you to make an informed and educated decision on your UK pension transfer.

To start the process with Harrison Brook you first need to tell us about your UK pensions. You can do this by clicking ‘Get Started‘ or by speaking to an adviser now on our live chat.