Frequently Answered Questions
BrilliantWithMoney SIPP – Frequently Answered Questions
We want your experience with the BrilliantWithMoney SIPP to be as easy and enjoyable as possible, so here is a list of Frequently Answered Questions (FAQs) that should help with most questions you might have.
If you cannot find your answer below, please contact us.
What is the BrilliantWithMoney SIPP?
The BrilliantWithMoney SIPP is a pension plan that enables you to save for retirement. It is able accept payments from you and your employer and is able to accept transfers in from other UK registered pension schemes.
Contributions into the plan and benefits from the plan are subject to UK pension’s legislation. This legislation includes rules about limits on contributions that qualify for income tax relief, the earliest age you can take benefits and limits on what those benefits can be without incurring tax penalties, including the amount that can be taken as tax-free cash.
How much can I invest in the BrilliantWithMoney SIPP?
The contributions you can pay are subject to UK pension’s legislation. This limits the amount that you can pay into the plan.
Under current rules you are able to make personal contributions to UK registered pension schemes of up to 100% of your earnings, subject to an annual allowance (currently £245,000 for the 2009/10 tax year).
You can make a gross annual contribution of up to £3,600 without reference to earnings, which is £2,880 net of basic rate income tax at 20%.
Where can I invest my BrilliantWithMoney SIPP?
Once established, you can invest in a wide range of investments:
-Bank account with Royal Bank of Scotland;
-Collective investment funds (including investment trusts, unit trusts and open ended investment companies (OEICS))
-Quoted company shares and exchange traded funds (ETFs)
What am I not allowed to invest in with my BrilliantWithMoney SIPP?
The BrilliantWithMoney SIPP cannot invest in:
-Commercial or Residential property or land;
-Property such as art, antiques, wine, jewellery, classic cars, racehorses etc- this is referred to by HMRC as “taxable moveable property and can be subject to tax charges;
-Unquoted securities;
-Contracts for differences;
-Traded endowment polices;
-Hedge funds;
-Venture Capital Trusts;
-Futures and options
Where can I get investment advice?
BrilliantWithMoney does not provide advice it simply provides information and guidance and access of course to the BrilliantWithMoney SIPP. If you want or need advice you should contact and authorised and regulated independent financial adviser who is competent to provide this.
You could choose to contact the firm that runs the BrilliantWithMoney site, Informed Choice; the award winning firm of Chartered Financial Planners. Alternatively you could contact any other independent financial adviser.
For information and guidance take a look at the asset mixes and fund selections that have been designed by BrilliantWithMoney but remember these suggestions do not constitute advice and may not be suitable for you.
Can I transfer my other pensions into my BrilliantWithMoney SIPP?
You can transfer into your BrilliantWithMoney SIPP benefits that you have built up in another UK pension plan. Read the ‘warnings’ page very carefully because there are some pension schemes which offer defined benefits or guarantees where you would have to give those up if you were to transfer.
Otherwise transferring your accumulated pension fund into your BrilliantWithMoney SIPP means that you can apply a consistent investment approach to your retirement planning as well have an online 24/7 view of your pension investments. In addition you can access a very wide range of investment funds all at low cost.
What does my BrilliantWithMoney SIPP cost?
There are no initial or yearly costs to establish your BrilliantWithMoney SIPP. Your contributions and any transfers into your SIPP are initially placed into a dedicated bank account with Royal Bank of Scotland.
You can then invest your pension plan through the Ascentric platform. At this point you will then incur investment management costs. Each investment fund is usually available to you without any initial charge and this means you are generally benefiting from a substantially lower entry cost. Each investment fund then has an annual management charge but this too is heavily discounted.
From your SIPP, Informed Choice Ltd the owners of BrilliantWithMoney will receive a fee of 0.2% each year paid to them monthly of the value of your SIPP. Gaudi, the administrators of the SIPP, will receive 0.3% each year payable monthly and Ascentric will also receive 0.25% each year payable monthly (for Ascentric this is subject to a minimum of £150 – and it is this charge that makes the BrilliantWithMoney SIPP most competitive for balances of £60,000 or more).
The fund manager will also receive an annual management charge and this will depend upon the fund selected. Around 2,000 of the funds we offer have no initial charge and a discount of 50% on the annual management charge.
In total then the expected annual cost of the BrilliantWithMoney SIPP is expected to be typically between 1.25% and 1.5% per year depending upon the investment funds selected.
What benefits do I get from my BrilliantWithMoney SIPP?
The benefits you can receive are subject to UK pension’s legislation. This limits the way that benefits can be provided to you.
