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 Lump Sum and Death Benefit Allowance (LSDBA), currently set at £1,073,100, is the maximum tax-free allowance for pension lump sums paid to beneficiaries when a member dies before the age of 75.
The tax treatment of death benefits largely depends on your age at death and how the benefits are paid.
- Death Before Age 75: Pension benefits are usually tax-free up to the LSDBA if the member dies before 75 and the benefits are passed to a beneficiary within two years.
- Death at Age 75 or Over: Any benefits the beneficiary receives will be taxed as part of their income, at their usual tax rate.
Tax implications depend heavily on individual circumstances, including tax protections and how funds were held. For personalised guidance, we recommend contacting MoneyHelper for a free Pension Wise appointment or that you seek professional financial advice.