What is a SIPP?

• A SIPP is a Self Invested Personal Pension
• You choose where your pension funds are invested
• You have considerable flexibility as to when and how you retire
• You can take out a Pension Commencement Lump Sum when you retire without buying an annuity
• Income Drawdown gives you the flexibility of more income options in retirement
• Funds can be left to your nominated beneficiary(s) when you die

Investments Allowed

• The Brooklands SIPP generally accepts all Her Majesty’s Revenue & Customs (HMRC) non-taxable investments
• This includes investments allowed traditionally by Personal Pensions plus:
• Equities, Unit Trusts and similar investments
• Discretionary Fund Manager
• Property Funds
• Commercial Property and Land in the UK
• Apartment Hotel Rooms
• Property purchases can be in the UK & Abroad

Please note:
- Investments can go down as well as up in value; past performance is no guarantee of future performance; clients should always take appropriate professional advice on investments.
- Brooklands do not offer any investment advice to clients

Protected Rights from Contracted Out Funds

• The Brooklands SIPP can accept the transfer of Protected Rights
• These funds can be used for ‘self investment’

Please note:
- Always take professional advice before transferring Protected Rights.

The Advantages & Risks of having a SIPP

• SIPPs give you more investment & retirement flexibility than personal pensions
• SIPPs enable you to take control of your pensions funds
• The Brooklands SIPP has fixed, and competitive charges
• Assets within your SIPP could benefit from IHT mitigation before age 75
• You choose whether or not to buy an annuity
• SIPPs need not die with you; your pension funds can be given to your nominated beneficiary
• You can transfer existing pensions into your SIPP

Please Note:
- SIPPs are not appropriate for everyone; always take professional advice before choosing a SIPP.
- You may be better off leaving your pensions in their existing arrangements.
- Your capital may be at risk if investments do not perform as expected.

Funding your SIPP

• Brooklands will accept the following types of Pension arrangements into your SIPP
  • Pensions we accept as transfer are:
    • Personal and Group Personal Pensions
    • SIPP’s
    • Defined Benefit (i.e. Final Salary)
    • Stakeholder and Group Stakeholder
    • FSAVCs, AVCs, RACs, RAPs
    • Section 32′s
    • S226 Buyout Bonds
    • Executive Personal Pensions

Please Note:
- Funds accrued in company pension schemes pre ‘A’ Day may possibly allow more than a 25% tax-free sum than is available under a SIPP.
- You may wish to protect extra tax free cash entitlements where they exist.
- You may ultimately end up with lower pension benefits by transferring, always take professional advice.

Retirement Options: Annuities & Income Drawdown

• When you reach 55, you can opt to take benefits from your pension. Typically you can withdraw up to 25% of your fund value as a Pension Commencement Lump Sum from your SIPP
• Many people buy annuities when they retire as they give a guaranteed and predetermined income for life, they can be good value for money if you live to an old age
• Annuities are however deemed inflexible, and poor value for money if you die early. The annuity dies with you, or dies with your spouse
• You are now no longer compelled to purchase an annuity ever.
• Within a SIPP however you are permitted to have greater income flexibility in retirement
• Following the withdrawal of your, Pension Commencement Lump Sum, you can draw an income from your pension though there is no obligation to do so
• You can decide each year how much income you take within permitted HMRC/Government Actuary Department (GAD) limits
• If you wish, you may draw the GAD Minimum (ie zero income) so as not to deplete your pension unnecessarily
• On your death the remaining pension funds can usually go to your nominated beneficiary
• A tax charge of 55% would be payable on death if you are aged over 75 or and/or your pension was deemed ‘crystallised’ (i.e. when you had taken your 25% tax-free lump sum)
• On your demise and if you had taken NO benefits from your SIPP then there would be no tax deduction from the fund value before its return to your nominated beneficiary.

Please Note:
- Income drawdown may deplete your fund funds quickly and should be reviewed at least on an annual basis by your financial advisor.
- If you initiate a Pension Commencement Lump Sum post 6th April 2011 you will be subject to a 3-yearly income limit review.
- You must ensure there is sufficient liquidity within your funds to provide your retirement.

Notes for Clients

• Brooklands do not give financial or investment advice to clients
• Brooklands do not accept business directly from clients.
• The above is for information only and is based on our understanding of current HMRC & FSA guidance which is subject to change.
• Clients should always seek independent financial advice on their unique personal circumstances.
• No action or inaction should be taken as a result of reading this page; Brooklands do not accept responsibility for any consequences of acting on the above notes.
• All comments relating to tax depend upon the individual circumstances of the client, and both the client’s circumstances and the tax treatments may change in the future.

Notes for IFAs

• SIPPs are provided by Brooklands Trustees Ltd which is a Self Invested Personal Pension’s administration company and is authorised and regulated by the Financial Services Authority (FSA).
• We provide a flexible investment choice within HM Revenue and Customs (HMRC) Regulations with minimal ‘in house’ rules.
• As a pension’s company we lead the way for overseas property and are willing to consider any location for commercial (HMRC non-taxable) property.
• We offer a bespoke personal service for introducers which includes white labelling and assisting with structuring new innovative pensions investments.
• Full marketing and technical data will be sent to you when you enquire.