So, as the SIPP is soon to be in BETA testing, I am sure people will stop moaning about it not having launched yet and how it’s been 84 years, to having questions about it.
This is the link the admin have posted with the lots of answers already, but if you do have a question, maybe this thread could be a place to collect them all together and as a community we could help each other with answers.
What do you think?
How to join for beta?
Ok,. so this is explained in the post by the admin, but they say they will contact a selection of users to join the beta.
Quote
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.
Ok, so T212 will automatically claim back 20% on all deposits from earnings. But, if I invest from my dividends earnt in my stocks and shares ISA, I am not entitled to the 20%. So, how do I stop T212 system from claiming that back?
ISA and SIPP will be 2 different wrappers. Money moved in SIPP will get 20% tax relief. You can pay in your SIPP only using bank transfers or debit card.
Also, you cannot move money directly from a Stocks & Shares ISA to a SIPP, but you can withdraw from your ISA and pay it into a SIPP to gain tax relief.
Is there an option or will there be an option in the future to make employer contributions from your own Ltd Companies business bank account. I currently have my SIPP with HL as I can make monthly direct debit employer contributions from my business.
I don’t see how claiming 20% back on something I have not paid tax on is legal.
Well it is legal.
If your annual employment income is less than your personal Income Tax Allowance then you do not pay Income Tax but your SIPP will receive the 25% rebate.
If you have no income at all then you can still pay ÂŁ2,880 net into your SIPP and still receive the 25% rebate to bring the gross payment to ÂŁ3,600.
Just to clarify you get a rebate of 25% of your net SIPP contributions which results in 20% of your gross contributions. So when people say 20% and others 25%, they are both correct.
You paid tax before you put money in ISA Account.
That is, sort of, correct. It would be more correct to say that you would have paid tax before putting money into an ISA subject to various allowances. For example, if your income is low then it is quite possible not to have paid any tax. If you work things carefully a single person could earn just over ÂŁ22,000 per tax year without paying any tax and put all that into an ISA.
In this context the single person could instead put in ÂŁ10,056 into their SIPP and receive a further ÂŁ2,514 Income Tax rebate when they have not paid any Income Tax.
Thank you. This has been interesting to learn. I have, of course, done my own research, but with the advice above, it all helps.
I’m a higher rate tax payer, so for me, the extra rebate at the end of the tax year is going to be even better.
One thing people need to be aware of is the lump sum allowance for all pensions.
That could catch people out.
Is there a timeline for waitlist acceptance, I guess it will be slow phased launch not to overwhelm the system?
Is there a timline on rebate payment. I can see from others it will appear on the account quickly, however, how quickly would they be investable?
With the transfer from another provider, will I need to sell all stocks and transfer, or will it transfer the investments as they stands ?
Do Trade 212 SIPP allow my limited company for employer contributions?
Not at the moment. It has been addressed on the other thread.
Will mutual funds be supported for SIPP accounts?
SIPP providers such as Freetrade offer these.
@throwaway212 Only the pension types mentioned in this article can be transferred to the 212 SIPP. If additional options are supported, we’ll update the article.
@rhyswoos There’s no specific timeline for the waitlist. The basic rate tax relief typically appears in your account within 6 to 11 weeks. As for the last question, yes, we support stock transfers. When initiated, your investments are transferred exactly as they are - no selling required. If you opt for a cash transfer instead, your current provider will liquidate your investments and send the proceeds to us as cash.
@R9Galaxy Mutual funds aren’t available on any of our account types. If this changes in the future, we’ll let everyone know.
Is flexi-access drawdown going to be a feature available in the future?
Yes, if you have to transfer elsewhere near end-game, that’s a royal pain…
So what draw-down options will there be for those with only a few summers left?
No. It’s in the blurb on the T212 SIPP section. What is flexi access drawdown etc… “
Note
Currently, our platform does not provide Flexi-Access Drawdown. This article is for educational purposes only, to help you understand what FAD is and how it works. It should not be treated as financial advice.” What is Flexi-Access Drawdown (FAD)? – Trading 212
You will have to transfer out to a company that does offer it, and they will be more expensive than T212, that’s for sure. But needs must. I hope that T212 offers some incentives to transfer SIPPs in from other providers or to open one. Right now I am one of the chosen betas, but not in a rush to open one in case I miss out on incentives to open one.
Will in specie transfers out be supported?