Select SIPP for Children
Frequently Asked Questions
Who can open a Select SIPP for Children?
The plan must be opened by the child's mother or father. If parents are not married the father cannot open the plan unless there is an order or agreement in terms of the Children Act 1989 or the Children (Scotland) Act 1995. In this case we require documentary evidence of the right of the father to open the Plan.
How do I apply?
Who can contribute?
The parent / legal guardian is responsible for contributions to the child's SIPP. However, contributions can be made by anyone, grandparents, friends, etc. Please ensure though that you keep records of any gifts for IHT purposes.
How do I contribute?
Contributions can be made monthly or quarterly by Direct Debit. Simply complete the relevant Direct Debit mandate and return it to us.
You can also make one off contributions by cheque or online by debit card.
What are the minimum contribution amounts?
You can contribute from as little as £50.
Is there a maximum contribution amount?
Contributions for each tax year must not exceed £2,880 net (£3,600 gross). This does not include any transfers into the Plan.
What are the tax implications?
Assuming your child has no 'taxable earnings' your child's SIPP could benefit from basic rate tax relief on contributions of up to £3,600 gross each tax year. Please contact us for more information.
When the child turns 18 (16 in Scotland) what happens?
Ownership of the Plan passes to your child at age 18 (16 in Scotland). We will write to the child at the relevant age to confirm that the details we hold on file for them are still correct and inform them that they now have ownership of the Plan.
When can they get the money?
Your child can normally take the money in the form of pension benefits at any time from age 55 even if they have not retired.
Can I use the money in my childs pension to pay school/university fees or save for a wedding, etc?
Once the money is invested in a Select SIPP for Children it cannot be returned or withdrawn until the child reaches age 55.
We do however have a simple, flexible and low cost First Steps Investment Plan which you can use to invest for your child's future. Like our Select SIPP for children First Steps combines wide investment choice with great value for money, and gives you the choice of managing the Plan online, by post or telephone.
For more information on our First Steps Plan click here.
Where can I invest?
We have over 3,000 UK listed securities to choose from and you have the flexibility to switch between investments at any time. To help you decide where to invest, our online share dealing service offers a comprehensive range of free research tools where you can fully research the market before making an investment decision.
How often will I get valuations?
We will send you quarterly statements and valuations. Also, once the plan is set up you will be able to login to Alliance Trust Online and view up to date information on your Child's plan at any time.
Can I make transfers into the Select SIPP for Children?
It is possible to make transfers into the Select SIPP for Children. There are no limits on the amounts which can be transferred in.
The pension products and services referred to on this page are provided by Alliance Trust Savings Limited, authorised and regulated by the Financial Services Authority.
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Before you complete your Select SIPP application for children, we strongly recommend you read and understand the Select Pension: - Key Features, Handbook, Contractual Terms and Charges.