Pensions

International SIPP

What is an International SIPP?

Discover the benefits of an International SIPP for expats and non-UK residents seeking to manage their pensions seamlessly across borders. With an International SIPP, you can effortlessly transfer and consolidate your UK pension benefits to your new country of residence while ensuring compliance with UK regulations.

Enjoy the flexibility of accessing regular or variable income through flexi-access drawdown while keeping your investments intact. Plus, unlike traditional pension schemes, there’s no obligation to purchase an annuity.

Why use an International SIPP as a Non-UK resident?

An International SIPP presents an optimal solution for British expats navigating the complexities of managing their pensions abroad. Beyond its convenience, this versatile platform empowers expats to diversify their portfolio with assets meticulously crafted for international clients. Whether investing in stocks, bonds, or other financial instruments, the International SIPP accommodates various currencies, enabling expats to capitalize on global opportunities while safeguarding their investments under the vigilant oversight of the Financial Conduct Authority (FCA) in the UK.

Benefits of an International SIPP

Most expats are able to open an International SIPP, whether employed, self-employed, not working or retired. What is important to note is that where you have your main home will determine the tax treatment of contributions into the pension scheme.

If you’re still a UK taxpayer, you’ll get pension contribution relief on the money set aside for retirement; and if you’re a tax resident elsewhere, you can still have a SIPP but without tax relief on your contributions. Importantly, in either scenario, you can drawdown in any country but it’s important to check what Dual Taxation Agreements (DTA) are in place with the UK and the country that you are residing in with your financial adviser.

If you eventually plan to return to the UK, an International SIPP may be still suitable for you. However, if you’re planning to retire abroad, a SIPP may not be the most appropriate pension solution and a QROPS may be more suitable.

Investment Options

Which are the most appopriate for you?

International SIPP v. QROPS

Like an International SIPP, a QROPS (Qualifying Recognised Overseas Pension Scheme) is aimed at expats with existing UK pension rights. The main difference is QROPS are typically more suited to those who have a large pension pot (i.e. close to the Lifetime Allowance, currently £1,073,100 for 2022/2023) as they may help mitigate future tax liabilities for exceeding the allowance when you come to draw benefits.

The Process

How to transfer an existing pension into an International SIPP

Transferring your current pension into an International SIPP is generally relatively simple, yet it’s crucial to ensure a precise and cost-effective transfer into an officially recognised and endorsed platform.