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I am not a resident of the UK, can I open a TD SIPP account?
Providing you have had UK taxable earnings in any of the last 5 years or have existing UK pension arrangements that you wish to transfer you can open a TD SIPP. You will need to download and complete the application form found in the Useful Forms section of our website rather than submitting your application online.
I already have a pension with another provider. Can I open a SIPP with TD Direct Investing?
Yes. There is no limit on the number of pension plans you can hold. You can open a TD SIPP in addition to your existing pension with another provider or your employer.
Who is TD Direct Investing Investor Services (Europe) Limited?
Brokerage Services for the TD SIPP are provided by TD Direct Investing Investor Services (Europe) Limited, a subsidiary of The TD Bank Group (TD or the Bank), part of one of the world's largest discount brokerage groups, servicing 19 million customers worldwide. TD Direct Investing Investor Services (Europe) Limited has over £3.77 billion in customer assets under management and is authorised and regulated by the Financial Services Authority. Read more about our company profile.
Who is AJ Bell Management?
AJ Bell Management Limited is the Scheme Administrator of the TD SIPP. AJ Bell Management Limited is part of AJ Bell, one of the UK's leading SIPP administrators with assets under administration exceeding £12 billion. AJ Bell Management Limited is authorised and regulated by the Financial Services Authority.
Who is Sippdeal Trustees Limited?
Sippdeal Trustees Limited is a wholly owned subsidiary of AJ Bell Management Limited and is the trustee of the TD SIPP.
Can I withdraw my money?
It is not possible to make withdrawals from your TD SIPP until you reach the age of 55.
Can my employer make contributions into my TD SIPP?
Yes your employer can make contributions into your TD SIPP by direct debit or by cheque.
Can I contract out from the State Second Pension (S2P) using my TD SIPP?
No. With effect from 6th April 2012 it is no longer possible to contract out from the State Second Pension (S2P).
What is Bed and SIPP?
Bed and SIPP is a way of making contributions to your TD SIPP using shares held in your trading account. We sell your chosen investments in your trading account, top up your SIPP with the cash (which is eligible for tax relief) and then buy back the shares to the value of the net contribution immediately. You can choose whether to invest the tax relief once it is received.
What happens if my contributions exceed the annual allowance?
If you make contributions above the level of the annual allowance the excess will be subject to an annual allowance tax charge tailored to the level of excess relief you have received depending on the rate of tax you pay.
What is the annual allowance for the tax year 2012-13?
The annual allowance for the tax year 2012-13 is £50,000.
What is carry forward?
Where you exceed the annual allowance of £50,000 in any given year, any unused allowance from the previous three tax years can be carried forward to offset against your excess pension savings.
What annual allowance will I be able to carry forward for the tax years 2009-10, 2010-11 and 2011-12?
An assumed annual allowance of £50,000 for each of the above tax years should be used when calculating how much unused allowance is available to carry forward. For example, if you have paid pension contributions of £40,000 in 2009-10 then you will have £10,000 available to carry forward to the tax year 2012-13.
What happens if I have paid £40,000 in 2009-10 and £60,000 in 2010-11? Can I carry forward unused allowance from 2009-10?
Yes, you can still carry forward the unused annual allowance of £10,000 to 2012-13.
Do I need to have made pension savings in a tax year to qualify for carry forward?
No, you can carry forward any unused annual allowance from any of the previous three tax years regardless of whether any contributions were made during that tax year or not. However, you will need to have been a member of a registered pension scheme at that time.
How do I reclaim higher rate tax relief?
A claim for higher rate tax relief should be made to HMRC through your self assessment tax return. The extra relief works by expanding your basic rate tax band by the amount of the gross pension contribution paid, rather than a physical payment of the extra tax relief due.
For example, if you are in the position that you are earning in the region of £44,000 and you pay regular contributions or a single contribution totalling £1,600 (which becomes £2,000 after basic rate tax relief is applied) you expand your basic rate tax band by £2,000 to become a basic rate tax payer again. By making a pension contribution you are effectively able to earn up to £46,475 before paying higher rate tax (in the tax year 2012/13).
Also, if your earnings fall into the additional tax band you benefit from the expansion of both tax bands, reducing the level of tax paid at the higher rate of 50%.
What are Protected Rights?
Protected Rights were built up in pension schemes from contracting out of the additional state pension, known as S2P or SERPS. With effect from April 2012, contracted out rebates previously paid by HMRC into pension schemes no longer need to be held separately from pension contributions that the member or their employer make however these may still be known as Protected Rights.
Can I transfer my protected rights policy into the SIPP?
Yes, we can accept a transfer of any funds previously known as Protected Rights from your previous pension provider.
Do you provide advice?
No neither TD Direct Investing nor AJ Bell Management Ltd can provide any advice in relation to your investment choice or whether the product is suitable for you. If you need advice you should contact a suitably qualified financial adviser who will give you details about the cost of any advice.
How do I ask TD Direct Investing to pay for the advice I have received from within my TD SIPP?
We understand that there are key important events during the lifecycle of your SIPP when you may want to seek advice from a financial adviser for example, if you are considering transferring in an existing pension policy or looking to take retirement benefits. When you consult a financial adviser your adviser will agree the cost of any advice with you. You can ask TD Direct Investing to pay the cost of that advice on your behalf from within the TD SIPP. To do so please download and follow the instructions on the Financial Adviser Remuneration Form found in the Useful Forms section of our website (please note that there is currently a cap on the level of payment we can make- refer to the form for details).
What can I invest in?
Please see the list of investment choices on the Managing Your TD SIPP page.
Are there any restrictions on the investments I can make in the TD SIPP?
Yes. You are unable to invest in commercial and residential property or land, insurance company investment policies, Venture Capital Trusts (VCTs), shares on PLUS markets, pink sheets or futures and options, unquoted company shares, personal chattels, loans or borrowing.
Can I invest in unlisted hedge funds?
No. TD SIPP does not offer this type of investment.
Can I invest in gold bullion?
What is Capped Drawdown?
Capped Drawdown is a form of income drawdown that can be taken from age 55. Income is drawn directly from your SIPP (which continues to be invested) subject to a maximum limit set by HMRC.
What is the Pension Commencement Lump Sum?
The Pension Commencement Lump Sum is a tax free lump sum that is usually available when you decide to take retirement benefits up to 25% of the fund value or your Lifetime Allowance, whichever is the lower.
What is the Lifetime Allowance?
The Lifetime Allowance is the level of pension funds that you can build up in all your registered pension schemes in your lifetime without triggering additional tax charges when benefits are taken. The Lifetime Allowance is £1.5m with effect from 6th April 2012.
What is Flexible Drawdown?
Flexible Drawdown is a form of income drawdown that can be taken from age 55. Income is drawn directly from your SIPP (which continues to be invested) and there are no limits on the amount of income you can take. Flexible Drawdown is only available to those who can demonstrate that they have a guaranteed income of at least £20,000 per annum from other sources, such as a life insurance company annuity or final salary pension (known as a Minimum Income Requirement).
Is it possible to take Flexible Drawdown from Protected Rights?
Yes, it will now be possible to take Flexible Drawdown from any pension funds previously known as Protected Rights.
Can I receive the pension commencement lump sum payment and not receive any income?
Yes. It is possible to receive the lump sum and request us not to pay any income.
Is there a requirement to purchase an annuity in retirement?
No, there is no longer a requirement to purchase an annuity although many people may still choose to do so as this remains one of the most secure methods of guaranteeing a certain level of income in retirement.
Do I pay any tax on the income I take from my SIPP?
Yes, income drawn through Capped Drawdown or Flexible Drawdown is taxed at your marginal rate of tax. You will receive regular pay slips and a P60 at the end of each tax year.
Do I need to provide beneficiary details?
We recommend that you provide beneficiary details and keep these up-to-date, as this will make it easier when the scheme administrator needs to decide who to pay benefits to. If you have protected rights benefits within the TD SIPP then it is important that you provide us with beneficiary details as the scheme administrator has no discretion as to who these benefits can be paid to.
The value of your investments can go down as well as up. You may not get back all the funds you invest.
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