Self-Invested Personal Pensions (SIPP)

What is a SIPP?

A Self-Invested Personal Pension Plan (SIPP) is a personal pension plan set up by a specialist provider or SIPP Administrator.

Investing in a SIPP can make a considerable difference to your retirement funds.  An estimated one million people in the UK have a SIPP pension plan, and there is no sign of demand slowing. So, what is a SIPP and how does it differ to other pension plans?

 

Long term, tax efficient investment

A SIPP is a long-term, tax efficient investment, designed to help fund your retirement. SIPP tax relief works in a similar way to other personal or stakeholder pensions. An investor makes contributions, the government adds basic rate tax relief, and over time the contributions accumulate.

Flexibility with broad investment choice

A SIPP offers flexibility and broad investment choice which enables investors to take more control of their pension investments. You can place many different types of investment in a SIPP, including funds, shares, bonds, gilts, commercial property and more. 

BondMason SIPP Service

The BondMason SIPP Service is tailor made to enable SIPP Investors to include BondMason sourced investments in their pension in a fully compliant way, combining the potential to earn attractive returns from direct lending, with the ability to receive your returns tax free.

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SIPP Tax Benefits

SIPP tax benefits are the same as other personal pensions, including basic rate tax relief added by the government for personal contributions. This boosts any contributions made.

In addition to the up-front tax relief, the investments within a SIPP can grow free of UK capital gains and income taxes.

From age 55 withdrawals can be made from a SIPP, up to 25% usually tax free with the rest taxed as income. Money left in a SIPP when an investor dies can usually be passed to their heirs with no inheritance tax. 

How to set up a SIPP

You can either start a SIPP from scratch with money that hasn’t been held in a pension or you can move your investments held in an existing pension.

Option 1: New contributions.  If you don’t have a pension already and want to set up a SIPP, you can open one either by making monthly contributions, or by investing a lump sum.

Option 2: Transfers from other pensions. If you already have a few pension plans, you can consolidate them into a SIPP so they’re in one place. 
 

Make sure you will benefit from transferring before proceeding with this route.  Check you will not lose a valuable guaranteed annuity rate, guaranteed investment return or any other benefit. 

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sipp investments
SIPP Permitted Investments

To invest your SIPP money into asset classes beyond the stockmarket and access a wider range of investments that are permitted by HMRC, you’ll need a full SIPP. 

With a full SIPP, you can invest in a wide range of standard assets such as stockmarket funds, cash deposits, bonds and stocks.  In addition, you could take advantage of non-standard assets such as direct lending and peer-to-peer lending.

Your SIPP could also be used to purchase real commercial property and in some cases it could lend money to your business. 

Some assets are likely to be refused by a SIPP operator, because investment in these areas will incur substantial fines and penalties from HMRC, such as residential property and ‘taxable property'.

WHY BONDMASON
Reasons to choose BondMason
Introducing the BondMason SIPP Service

Returns: Target gross returns of 8.0% p.a. – making a material difference to funding your retirement.​​​​​​

Diversified and asset-backed: Access opportunities sourced from multiple lending platforms, with a focus on asset-backed lending.

Fit-for-SIPP: Our innovative investment structure makes BondMason the go-to partner for leading SIPP administrators.

No additional fees: There aren't any additional fees, we only charge our standard rates on invested capital.

Our SIPP and SSAS Partners

We are very happy to talk to your SIPP or SSAS provider directly to discuss including BondMason-sourced investments into your pension. Alternatively we can introduce you to the SIPP and SSAS administrators that we already work with. 

Please contact us on 01582 802 000 or email the team at invest@bondmason.com

Benefits for SIPP Investors
  • Returns: Target gross returns of 8.0% p.a. – making a material difference to funding your retirement.
  • Diversified and asset-backed: Access opportunities sourced from multiple lending platforms, with a focus on asset-backed lending.
  • Fit-for-SIPP: Our innovative investment structure makes BondMason the go-to partner for leading SIPP administrators.
  • No additional fees: There aren't any additional fees, we only charge our standard rates on invested capital.
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Benefits for SIPP Administrators

Our bespoke investment structure enables SIPP Administrators to service client demand for lending, more profitably and with full compliance.

  • SIPP Administrator dashboard: To view client accounts and activities.
  • Client on-boarding: Dual authorisation as part of the account opening process. 
  • Compliance: Innovative investment and operating structure so client investment is restricted to compliant activities only.
  • Diversification: Clients can only invest up to 3% of their funds in a single asset, with a minimum of 50+ positions when fully deployed.
  • No conflict: We work exclusively for the benefit of investors.
  • Fee free: There are no fees for SIPP Administrators.
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It was simple to get started and so far the returns have been great.

John

What is great? - Very quick and easy to set up - Fabulous reporting…

Sebastian M

All round customer service has been excellent…very pleased with our experience with BondMason.

Mr Biddle

I have no reservations in using or recommending BondMason as a platform.

Nikki

I have used many peer to peer lending sites over the last 5 years and this is the best by far, they manage my account for me only investing in carefully selected loans, they have diversified my account and after fees and currently no bad debt to date (6 months) I am still archiving 8.3% after fees.

Keith. H

Great interface and dashboard. Deployment of cash was seamless and so far the returns are excellent whilst offering good liquidity.

Andrew

Would highly recommend Bondmason - very efficient, great interface and I rate highly their cautious approach to peer-to-peer investment.

Alexander. C

Find out more about our SIPP Service

We are happy to discuss any questions you may have relating to our SIPP Service and answer you any questions you have about how to set up a SIPP.

Please contact us on 01582 802 000 or email the team at invest@bondmason.com

A note on advice

Important note: Information on bondmason.com is for information purposes only and does not constitute investment advice. For investment advice, please consult a professional financial adviser. You capital is at risk. The value of all investments can fall as well as rise so you may get back less than you invest. 

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