Using existing investments as SIPP contributions
With investment, your capital is at risk.
A Bed and SIPP lets you top up your pension by using your existing investments as SIPP contributions. You simply sell your investments and use the proceeds to open or top up your pension. You can then buy the same investments back, select different ones or simply leave the cash in your account. Whatever you choose, you could benefit from the tax benefits of pensions on your current investments.
The main reason to carry out a Bed and SIPP transfer is to make use of the tax benefits of a pension without investing any new money. Just like ISAs, investments in pensions grow free from both capital gains tax and income tax – so you could have more money left to enjoy in retirement.
When you first sell your investments, any gains you make could be covered by your annual capital gains tax (CGT) allowance – £12,300 in the current tax year. If your gains exceed the allowance, you will pay your usual rate of CGT on the excess. But if you make a loss you could offset any other capital gains made this year or in the future.
If you invest through our Online Investment Service:
Find out more about Bed and SIPP transfers into our award-winning Best SIPP by getting in touch:
*For tax purposes this payment will be considered a personal contribution to your SIPP. Therefore, you will need to sign an Additional Contribution form before completing your Bed & SIPP transfer.
SIPPs are not suitable for everyone. They may not be right for you if you don’t want to invest across different asset classes or don’t think you will make use of the investment choices available to you. Please contact us for guidance or advice if you are unsure.
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Our friendly team can help you with any concerns you have about your pension