Can a person have more than one SIPP..?

Hawkey99 · Post by **Hawkey99** » 12 Sep 2020, 17:05

Not necessarily RM related but I wondered if you can have more than one SIPP ?

Reason for asking is other half would like to take a lump sum out of her SIPP shortly (not RM) and I assume you can no longer pay into that SIPP.

However she would still like to pay small monthly amounts into a SIPP.

Hence the question above....

Many thanks as always for any help.....

Post by **NorthernBoy** » 12 Sep 2020, 18:17

Hawkey99 wrote:Not necessarily RM related but I wondered if you can have more than one SIPP ?

Reason for asking is other half would like to take a lump sum out of her SIPP shortly (not RM) and I assume you can no longer pay into that SIPP.

However she would still like to pay small monthly amounts into a SIPP.

Hence the question above....

Many thanks as always for any help.....

Yes, you can have as many as you want.

You are only limited to how much you can put in that attracts tax relief, which is your annual income/salary up to a maximum of 40k.

Hawkey99 · Post by **Hawkey99** » 12 Sep 2020, 18:20

Thank you very much........

Post by **freespeech** » 12 Sep 2020, 18:50

NorthernBoy wrote:
Hawkey99 wrote:Not necessarily RM related but I wondered if you can have more than one SIPP ?

Reason for asking is other half would like to take a lump sum out of her SIPP shortly (not RM) and I assume you can no longer pay into that SIPP.

However she would still like to pay small monthly amounts into a SIPP.

Hence the question above....

Many thanks as always for any help.....
Yes, you can have as many as you want.

You are only limited to how much you can put in that attracts tax relief, which is your annual income/salary up to a maximum of 40k.

......although you can use any left over in the previous three years.

Post by **RobertT** » 13 Sep 2020, 05:49

Hawkey99 wrote:Not necessarily RM related but I wondered if you can have more than one SIPP ?

Reason for asking is other half would like to take a lump sum out of her SIPP shortly (not RM) and I assume you can no longer pay into that SIPP.

However she would still like to pay small monthly amounts into a SIPP.

Hence the question above....

Many thanks as always for any help.....

Once you've taken the tax free cash you have 6 months to do something with the remainder, such as buy an annuity or start drawdown.

If you go the drawdown route you should still be able to pay more in, but as soon as you take anymore out, over and above the 25% tax free you'll trigger the MPAA, meaning a max contribution level of £4k per from then on.

lordthornber · Post by **lordthornber** » 13 Sep 2020, 08:54

My SIPP is with Fidelity, it is in drawdown but each new tax year because I have no earnings I put the maximum of £2880 in a "new" SIPP. About 6 weeks later HMRC grosses it up to £3600 so £720 of tax relief. It's all very easy to do, and depending upon your own allowance situation you can in theory withdraw the lot at one go, or just bung the lot into your existing SIPP. That is what I've done anyway.

Hawkey99 · Post by **Hawkey99** » 14 Sep 2020, 19:35

So as stated you can have more than 1 SIPP, if you had 2 once you start to drawn down on them can you £2880 into each one or is this a annual amount per person.

Also you mention you open a new SIPP each year. Do you need to do this or can you top up your current SIPP ?

Thanks

lordthornber · Post by **lordthornber** » 14 Sep 2020, 21:09

When I contacted Fidelity I explained my needs, being honest I can't actually remember whether they open a "new" SIPP or just do a paper exercise. I'm about do to it again in the next month so I'll be in a better position to explain it accurately.

lordthornber · Post by **lordthornber** » 14 Sep 2020, 21:19

Sorry, just re read this, it is only £2880 per person, not per SIPP.

Post by **RobertT** » 14 Sep 2020, 22:03

Everyone has a yearly limit to how much they can out into their pensions each year and receive tax relief, that limit is how much they earn, up to a max of £40k. It could all go into 1 pension or 10!

The £3,600 gross/ £2,880 net annual contribution limit applies to people with no income. That can still go into as many pensions as you want, but £3,600 is the total max amount per year.

Hawkey99 · Post by **Hawkey99** » 15 Sep 2020, 13:32

Thanks Robert,

I assume you mean no income except Pension payments ?

Just out of interest why do the government do this ?....Sounds a bit bonkers ??

Surely this is also a soft target for them to get their money back after Covid finishes ?

Post by **RobertT** » 15 Sep 2020, 16:09

Pension income counts towards your income tax liability, and as far as I know it counts towards how much you can pay into your pensions too.

Why does the government do what? Are you referring to tax relief?
If so it's an incentive for people to save for their retirement.

Higher rate tax relief may well be in the firing line when it comes to pay for covid, but I cant see them scrapping it altogether.

lordthornber · Post by **lordthornber** » 15 Sep 2020, 17:29

HMRC confirmed to me that the £2880 can be paid in regardless of whether you are in receipt of pension income. They class income in the £2880 situation as payment from work. Here you go, some light reading..
https://www.gov.uk/hmrc-internal-manual ... /ptm044100" onclick="window.open(this.href);return false;

lordthornber · Post by **lordthornber** » 15 Sep 2020, 17:54

Just looked at mine. I have the SIPP in drawdown and a SIPP savings account. There's 6p in it. I remember now what happened last year. I can put the £2880 into the savings SIPP online, when it grosses up to £3600 6 weeks later, I have to ring the pension section at Fidelity to have a 5 minute chat (it's compulsory) then they'll transfer it to the SIPP in drawdown. At that point of course you can elect to receive the 25% again (£900) or the lot as a lump sum or leave the lot in. It sounds hard work but £720 for a phone call and an online transaction suits me.