Is my sip pension tax free

Discussion in 'Armed Forces Pension Scheme' started by foreverxbox, Nov 20, 2007.

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  1. Hi,

    Ive been discharge medically and had my medical by VA and they awarded it as attruibtable to military service. So is my Sip tax free as I ve recieved a letter hm revenues and customes saying that they sont know what tax code to use and are setting it at 22%. I thought it was tax free or is this a mistake
  2. Hi,

    Yes, your SIPP pension will still grow at a tax free rate, and your contributions will still benefit from basic rate tax relief, which is currently 22% and will be changed to 20% from 6 April 2008.

    Hope that helps.
  3. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    You can take 25% of your pre-pension fund tax free. Any subsequent post-pension income is taxable.

    Edit: When you come to draw your pension benefits that is.
  4. Assuming you mean SIPP - Self Invested Personal Pension then quaifying contributions will attract tax relief at the highest rate you pay, or if you are NOT a taxpayer you can still get basic rate relief on contributions mup to £3600 a year.

    Incidentally, why do you have a SIPP?