Frequently Asked Questions

These are some of our frequently asked questions but if you have any specific queries please contact us.

 

SSAS

How do I apply for a SSAS?

  • You will need to complete the relevant documentation and return the completed forms to us.
  • You can either download the documents from here or if you contact us we can send you them by email or post to complete.
  • When we have received this we will be able to advise you as to how you may proceed.

How do I put money into a SSAS?

  • Contributions are usually paid in by a company and treated as a business expense when calculating corporation tax.  They may also be paid by a member.
  • Each member is subject to an Annual Allowance for all contributions (personal and employer) which is £40,000 for the 2014/15 tax year. If this is breached, there is a tax charge on the SSAS member personally. There is, however, a carry-forward provision for the Annual Allowance.
  • There is more information on employer contributions (RPSM05200000) and the Annual Allowance on the HMRC website.

How do I get money out of a SSAS?

  • You can take a tax free lump sum of up to 25% of your fund.
  • You can draw a pension from your fund.
  • You can buy an annuity to secure your pension.
  • All pensions are subject to income tax through PAYE.
  • You can use the flexi-access provisions introduced in April 2016 to access the whole of your fund
  • You can leave your fund to your dependants (subject to current tax laws).

What can a SSAS invest in?

  • We do not provide or have any links to any investments, as our aim is to provide our clients with the widest possible investment choice, but see below:
  • We will not permit some investments and may restrict the amount that can be invested in certain other investments. This is if our due diligence indicates that there may be adverse tax consequences in making such an investment, or because we have concerns that a particular investment or investment type is likely to have been mis-sold, promoted illegally or simply a scam.
  • The SSAS can lend money to the Sponsoring Employer subject to conditions laid down in legislation. In essence these state that any loan must be on a capital and interest basis and be secured via a legal charge. For full details of the conditions see our document above.

What does a SSAS cost?

Please click here to see our charges.

The annual fee permits the following investments:

  • Equity based discretionary, advisory or execution only portfolio management using one stockbroker
  • Cash
  • Insured products subject to no more than 5 holdings

It includes the following services:

  • Annual valuations
  • Receipt of contributions
  • Illustrations
  • Reporting to HMRC

Other investments and transactions may require us to carry out additional work – please contact us for further details.

 

SIPP

What is a SIPP?

  • A SIPP is a personal pension where a member can make his or her own decisions on the investment policy.
  • Our job is to make sure that the pension runs as smoothly as possible.
  • Our SIPP, which is called the MC Trustees Private Pension, is a registered pension scheme for tax purposes established in accordance with the provisions of Chapter II Part IV of the Finance Act 2004. It differs from most personal pensions in that the member, either alone, or with professional advice can determine the investment strategy.

Who can have a SIPP?

  • Anybody.
  • You can have a SIPP in addition to any other personal or occupational scheme of which you are a member.

How do I apply for a SIPP?

  • If you are UK or EU resident we are required to provide you with a Key Features Illustration before you can  open a SIPP. Please click here for an initial Enquiry Form
  • Once you decide to proceed you can download all the documentation you need here.
  • Alternatively you can contact us to request the documentation be sent to you.

What can a SIPP invest in?

  • We provide a guide to SIPP investments which should explain what we will permit within the MC Trustees Private Pension.  Our aim is to provide our clients with the widest possible investment choice.
  • We do permit non-standard investments provided they meet our criteria please see our Non Standard Investment form for further details {click here}
  • We also permit some Unquoted Share investments but  there are very strict regulations please [click here] for further details
  • We will not permit some investments and may restrict the amount that can be invested in certain other investments. This is if our due diligence indicates that there may be adverse tax consequences in making such an investment, or because we have concerns that a particular investment or investment type is likely to have been mis-sold, promoted illegally or simply a scam.

How do I put money into a SIPP?

  • You can make contributions or transfer in money or assets from any other Registered Pension Scheme.
  • If you contribute personally we reclaim basic rate tax relief back from Her Majesty’s Revenue & Customs (HMRC) on any contribution made within their limits. This means that, if you contribute £80, we claim back £20 direct from HMRC, grossing up your contribution to £100.  If you are a higher rate tax payer, you can claim back higher rate tax relief from HMRC through Self-Assessment. This will mean a reduction in your tax bill or. possibly, a refund.  If the contribution is paid in by a company it is treated as a business expense when calculating corporation tax.
  • There is no limit on the amount you may transfer in but you are limited to tax relief on personal gross contributions to 100% of your relevant UK earnings for that tax year. These are basically your taxable earnings from employment or self-employment.
  • There is also a limit called the Annual Allowance for all contributions (personal and employer), which is £40,000 for the 2015/16 tax year. If this is exceeded, there will be a tax charge. There is, however, a carry-forward provision for the Annual Allowance.
  • There is more information on contribution limits (RPSM05200000) and the Annual Allowance on the HMRC website.

How do I get money out of a SIPP?

  • Benefits can be taken from age 55.
  • You can normally take a tax free lump sum of up to 25% of your fund.
  • You can draw a pension from your fund direct.
  • You can buy an annuity to secure your pension.
  • All pensions are subject to income tax through PAYE.
  • You can leave your fund to your dependants and/or nominated beneficiaries (subject to current tax laws). See our Key Features Document for more details.

What does a SIPP cost?

Please click here to see our charges.

  • Our set up fee is £250 plus VAT
  • Our basic annual fee is £655 plus VAT

The annual fee permits the following investments:

  • Equity based discretionary, advisory or execution only portfolio management using one stockbroker
  • Cash
  • Insured products subject to no more than 5 holdings

It includes the following services:

  • Annual valuation
  • Receipt of contributions
  • Claiming tax on contributions
  • Placing the investments
  • Illustrations
  • Reporting to HMRC and the Financial Conduct Authority

Other investments and transactions may require us to carry out additional work, please contact us for further details.