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SIPP FAQs

Who can open a Select Pension?
You may open a Select Pension if you are eligible to make a contribution or if you wish to transfer the value from another pension scheme to the Select Pension.

Who is eligible to make a contribution to the Select Pension?
You can make personal contributions to the Select Pension and claim tax relief on these if you are aged less than 75 and:

• you have earnings chargeable to UK income tax e.g. employed or self-employed earnings, or



• you are resident in the UK at some time during the tax year in which you make the contribution It is not necessary to have earnings to contribute and you may open a Select Pension on behalf of a child. You should keep Alliance Trust informed of changes in your circumstances as these may affect your eligibility to obtain tax relief on contributions to the Select Pension.

What contributions can I make?
There is no limit on the amount you can contribute in any one tax year, although the amount of tax relief that you can obtain is limited. Tax relief will be available on personal contributions up to 100% of your taxable earnings in the tax year, or £3,600 if your earnings are below this level. Alliance Trust will automatically assume that personal contributions you make are paid net of tax and are eligible for tax relief unless you notify us to the contrary.

How do I make contributions?
You can make personal contributions to your Select Pension by cheque or direct debit. The minimum contribution is £50.

Can I make a contribution using employee shares?
Yes. You can contribute by transferring in shares acquired through a savings related share option scheme, an approved profit-sharing scheme or a share incentive plan provided the shares are available as an investment choice within the Select Pension. The transfer of shares, which must be transferred in within 90 days from the date of exercise of the right or release to you, is treated as a net contribution based on the aggregate market value of the shares on the day of transfer. Further information on contributing using employee shares is available from Alliance Trust.

Can I fund a contribution using other investments?
Yes. It is also possible to fund a contribution using investments which you already hold, provided they are available as an investment choice within the Select Pension. If you wish to fund a contribution in this way please contact Alliance Trust for further information.

Can my employer make contributions?
Yes. There is no limit on the amount your employer can pay into your Select Pension. These contributions should be allowable for corporation tax relief if your employer's Inspector of Taxes is satisfied that they are 'wholly and exclusively' for business purposes.

How does my employer make contributions?
If your employer wishes to make contributions to your Select Pension you should obtain an employer's pack. This is available on request from Alliance Trust. Employer contributions can be made by cheque or direct debit and are made gross.

Can I transfer values from other pension schemes to the Select Pension?
Yes. You may be able to transfer the value from another pension scheme to the Select Pension. A transfer in charge is payable for each transfer. If you have contracted out under other types of pension arrangements and you wish to transfer your benefits, any part of the transfer that relates to 'protected rights' or 'guaranteed minimum pension' (GMP) cannot be transferred to the Select Pension. This portion of the transfer value must remain with the existing provider or be paid to another pension scheme that has the ability to accept this. Alliance Trust can assist you in the administration of this element of the transfer. There is an additional charge for this service. When thinking about the suitability of a transfer, you should consider the benefits that you may be giving up. If you are unsure whether to transfer an existing pension arrangement, please seek professional advice.

Alliance Trust does not give advice. If you wish to transfer benefits from another scheme, you should note that it might take some time for a transfer value to be received.

In what form are transfer values accepted?
Transfer value payments to Alliance Trust are accepted in cash or by the transfer of investments, provided the investments are available as an investment choice in the Select Pension. If you are transferring in cash your Select Pension will bear the risk of any adverse market movements between the time you give instructions and the time transfer values are invested within the Select Pension.

Can I transfer the value of my Select Pension to another pension scheme?
Yes. Transfers out can be in cash or by the transfer of investments, provided your new scheme is willing to accept those investments. Your Select Pension will bear any sale charges and security transfer charges as well as the transfer out charge. For further information on transferring out and the forms you should contact Alliance Trust.