SIPP accounts are currently offered on a Beta basis and are available only to a limited number of users for testing purposes. During this period, features, functionality, and availability may be subject to change or withdrawal without notice.
We will announce when SIPP accounts become available to eligible UK-resident clients of Trading 212 UK Ltd.
A pension is a tax-efficient way to save for your retirement. The Trading 212 SIPP (Self-Invested Personal Pension) gives you the control to choose your investments and manage your portfolio. It is a flexible, tax-efficient way to save for retirement.
- Annual Allowance: Most people can contribute up to £60,000 including tax relief (£48,000 personal contributions) each tax year. Please note, tax relief is only available up to 100% of your UK relevant earnings.
- Tax Relief: When you contribute, Trading 212 claims basic rate tax relief from HMRC on your behalf. This usually appears in your account within 6 to 11 weeks. For example, a £100 net contribution becomes £125 gross. If you pay higher rate tax, you can claim additional relief via your self-assessment tax return, or directly from HMRC.
- Tax-Free Growth: Your investments within the pension grow free from UK income and capital gains tax.
- Consolidation: A SIPP is an excellent tool for combining multiple existing pensions into one place, making your retirement savings easier to manage.
Who can оpen a SIPP?
To open and contribute to a Trading 212 Self-Invested Personal Pension (SIPP), you need to meet the following criteria:
- You must be a UK resident.
- Alternatively, you can be a Crown servant performing duties abroad, or be married to or in a civil partnership with a Crown servant.
- You must be 18 years or older and be able to verify your identity, including providing your National Insurance Number (NINO).
- You need to be under the age of 75.
To make contributions to your SIPP:
- You need to be under the age of 75.
- You must be a UK resident for tax purposes, a Crown servant performing duties abroad, or married to or in a civil partnership with a Crown servant.
📄 Note
Individuals who are considered a US Person for tax purposes are unable to open a SIPP with UK providers due to complex tax regulations, even if you are a UK resident.
What types of contributions are accepted?
Personal Contributions
You can contribute to your Trading 212 SIPP directly from your own income. When you do, we automatically claim basic rate tax relief from HMRC on your behalf and add it to your pension pot.
💡 Example
If you contribute £80, we'll claim an extra £20 for you, making your total contribution £100. This acts as a 25% top-up on your personal contribution. This tax relief usually appears in your account within 6 to 11 weeks from the initial contribution.
- Annual Allowance: Your personal contributions count towards your annual allowance. For most people, this is currently £60,000 per tax year or 100% of your UK earnings, whichever is lower.
- Contributing Without Earnings: Even if you don't have UK earnings, you can still contribute up to £3,600 gross to your pension each tax year. This amount includes the basic rate tax relief (meaning you'd pay in £2,880 net).
When can I access my SIPP?
You can typically start accessing your pension savings from age 55 (rising to 57 from 2028).
📄 Note
Pension rules can be complex and depend on your individual circumstances. For personalised guidance, we recommend consulting MoneyHelper for a free Pension Wise appointment or seeking professional financial advice.
What is pension recycling?
Pension recycling involves taking a tax-free lump sum (PCLS) and then reinvesting that sum back into a pension scheme. HMRC may impose a tax charge if they believe this is being exploited. This can be triggered if:
- You take a tax-free lump sum that exceeds £7,500.
- You make significant contributions to a new pension using that lump sum.
- The total additional contributions exceed 30% of the tax-free lump sum.
What is Tax relief?
When you make personal contributions to your pension, the government helps you save more by adding money in the form of tax relief.
- Basic Rate Tax Relief: For every personal contribution you make, we will automatically claim basic rate tax relief. For example, a net contribution of £100 will be increased to a gross contribution of £125, with £25 representing the tax relief. This acts as a 25% top-up on your personal contribution. This relief will typically be applied to your SIPP within 6 to 11 weeks after your contribution is made.
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Higher and Additional Rate Tax Relief: If you're a higher rate (40%) or additional rate (45%) taxpayer, you can claim further tax relief. You'll need to do this yourself, either through your HMRC self-assessment tax return or by contacting HMRC directly. This additional relief is usually provided to you as:
- A rebate at the end of the tax year.
- A reduction in your overall tax liability.
- A change to your tax code.
📄 Note
This extra relief will not be paid into your Trading 212 SIPP.
How are pension benefits handled after death?
Beneficiary Nomination
It is crucial to nominate beneficiaries to ensure the effective transfer of your pension. If you don’t name a beneficiary, the pension trustees will decide who receives your pension based on your Will or family circumstances. This could cause delays for your loved ones, and the trustees’ final decision may not fully reflect your wishes.
📄 Note
A beneficiary is any person or charity you nominate to receive your pension funds after you pass away. Beneficiaries' taxation on your pension funds depends on their age:
- Under 75: Withdrawals are usually tax-free if paid within two years.
- 75 or older: Withdrawals are typically taxed as income.
What happens if I move abroad?
If you move overseas, your ability to manage and access your Trading 212 SIPP will change.
- Contributions: You won't be able to pay into your SIPP once you cease to be a UK resident for tax purposes.
- Accessing Funds: In most cases we can still assist you in withdrawing from your SIPP once you reach Normal Minimum Pension Age.
📄 Note
Currently 55, rising to 57 from 2028.
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UK Tax: Taxable withdrawals will be subject to UK income tax.
Transferring Out: You can transfer your SIPP to another UK pension provider. Trading 212 does not currently facilitate transfers to a Qualifying Recognised Overseas Pension Scheme (QROPS).
Given the complexities involved, especially with overseas tax implications, we recommend that you seek specialist financial advice from a qualified adviser, or consult MoneyHelper for a free Pension Wise appointment.