Tim Bennett Explains: Which is best - an ISA or a SIPP?

ISAs and SIPPs both offer tax effective ways to save. Tim Bennett compares the key features of both.

[@rajaamerkhan3175]

Best explanation. Very clear and informative. Thank you.

[@pooka9052]

Very clear way to put across the important points and all done while virtual skiing. Well done, now back to the slopes.

[@craiganderson9564]

I have been researching the ISA vs SIPP benefits for a while, this is a great explanation, thank you!

[@sianhewist2264]

This guy is a god send for me studying my Diploma in Regulated Financial Planning!

[@boxingfan108]

Thank you for the informative videos. Would be great if the subtitles can be made without blocking your presentation.

[@lindyf381]

Brilliant video- Very informative and nicely simplified.

[@kynchan3332]

If you trade UK stocks in the SIPP to make a capital gain but do not contribute or down draw does hmrc need to know the transactions. I have a tax allergy.

[@davidlloyd3116]

I have a wrapper, ISA and personal pensions (from NHS and private industry). Retired at 56.

[@Uppurak]

thanks for the video

[@GH-he5wf]

I'm self employed and a higher tax payer, am I right in thinking that in terms of tax efficiency theres really no difference between a SIPP and pension, unless when you withdraw you then become a low tax payer (20% as opposed to 40%). I still think I will use a SIPP to reduce my overall tax bill a year first and then perhaps look into a stock and shares ISA. Additionally with your example you just assumed one has already taken 25% from their SIPP, so actually SIPP's overall are more tax efficient? Thanks :D

[@roblittle6261]

“On the way out” So am I right in thinking if before retirement you worked 1 year or so to get into the new tax year you would end up getting the lower tax on the SIPP?

[@FBK-SL]

I have an NHS pension, I work agency work at times, they are now asking if I want to sign up with an Umbrella company pension scheme, would this be considered a private pension? Would I be taxed 25% twice with the two different SIPP??

[@traderlondon]

NHS pension is not a SIPP, it's a government sponsor pension plan with its own rules. The umbrella company pension scheme that you have been offered would be a private pension scheme where you have limited amount of control in its investment decision. This is also not a SIPP. You will not be taxed twice if you decide to join the Umbrella company pension scheme and will receive additional tax refund from the government @ 20% on your contributions.

[@summer7529]

@@traderlondon how to transfer nhs pension to sipp

[@trollface1994]

is this video for educational purposes only?

[@domigedomige]

Hi Tim, We really enjoyed your video! Just wondering where we could find an ISA that would pay 6%? I might be missing something but I can only ever find ones that pay just over 3% Also It would be lovely to see a video on the 2015 NHS pension changes and what the best options were to those who seek a slightly early retirement (like me!).

[@Sam-ue4rv]

Video was made years ago.. Nowadays be happy with 3% Do fixed deposits.. Peer to peer is risky.. Savings is different to investing.. Other ways to save is cut out unnecessary expenses live below your means.. or get a better paid job that's the best way to earn more..

[@trevorkeast]

Hi Tim, great video. One question I do have that wasn't really explained is the lifetime allowance on the SIPP. The current lifetime allowance is 1 million. If I have 2 million in my SIPP then what happens to the remaining one million after the lifetime allowance has been exceeded?

[@MrHiddenTalent]

Hi Trevor, any excess over the current LTA of 1 million is subject to a tax charge depending on how the money is withdrawn. A 25% tax charge applies if the money is taken as an income e.g. an annuity or drawdown and a 55% tax charge applies if the money is taken as a cash lump sum.

[@williamhadley549]

@@MrHiddenTalent I know this is an old comment. But it sounds like to me, if you're an investor you're better off having an ISA over a SIPP if you think you plan to be a millionaire at some point. Especially if you have a small income and are just funding money into a index account, for example, and hope to have the reward in 30/40 years time.

[@zzhughesd]

So upon retirement just take personal allowance tax free. Draw it down under that. Never pay tax !?

[@kite9039]

What ISA can I get 6% interest