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.
The annual allowance is the maximum amount that can be contributed to your pensions in a tax year while still benefiting from tax relief. For most individuals, this limit is currently £60,000 or 100% of your UK earnings, whichever is lower.
Pension allowance rules can be complex, especially if you have a high income or have already started taking money from a pension. If you're unsure about your Annual Allowance or need more detailed guidance, we recommend contacting MoneyHelper for a free Pension Wise appointment, or that you seek professional financial advice.
📄 Note
If your total pension contributions in a tax year exceed your Annual Allowance you may face an Annual Allowance tax charge from HMRC.
What counts towards your Annual Allowance?
This £60,000 limit includes:
- Your personal contributions.
- Any contributions made by your employer.
- The tax relief added by the government (remember, basic rate tax relief acts as a 25% top-up on your personal contribution!).
What is the impact of your UK Earnings?
Your personal pension contributions can only receive tax relief up to 100% of your UK relevant earnings for that tax year. For instance, if your earnings are £30,000, even though the standard annual allowance might be £60,000, the most you can contribute and receive tax relief on is £30,000.
What if you have no UK Earnings?
If you don't have any UK relevant earnings in a tax year, you can still contribute up to £3,600 gross (£2,880 net for personal contributions, plus basic rate tax relief).