Walls Walker

Personal Pensions

All monies invested into your fund grow free of capital gains tax and income tax*, and the contributions you make are enhanced by income tax relief at source. For example, if you invest £80, the government adds on tax relief (currently 20%) to enhance your contribution to £100! If you are a higher rate taxpayer you can claim additional relief through your tax code or reduce the amount of tax due on your next payment.

A personal pension is an arrangement made in your name over which you have personal control. You can alter your contributions, suspend them, or stop them completely.

A Self Invested Personal Pension (SIPP) is a tax-efficient wrapper within which a wide range of investments can be held. The range of permitted investments includes deposits, unit trusts, stocks and shares, and commerical property. This more sophisticated pension arrangement is typically suitable for individuals who have larger funds to invest or wish to acquire commercial premises for their business in the most tax-efficient way.

Stakeholder Pensions are the most simple investments in terms of product features and charges. These plans are typically suitable for contributions of a modest size, either single or regular. These plans can form an important part of an overall Inheritance Tax Plan designed by WallsWalker. You can make contributions on behalf of your grandchild, receive tax relief on the contribution, and remove the capital from your estate (over seven years or sooner dependent on circumstances).

Pension contributions enjoy generous tax relief and should form part of your tax planning, but it is an area of constant change and you should refer to your adviser for an update.

* 10% tax credit on UK dividends cannot be reclaimed.