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Manx Sipp


BenFairfax
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I used Mac Financial. I cannot remember the costs, but it was not cheap. The problem with gad rates is that you can only take income based on gad at one specific time. It is then fixed for three years. If I had signed the contract three months earlier, I could have taken up to 9%. Same if I had taken it three months later. As it stands I only got 6% fixed for three years. At the moment it has actually dropped further.

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How much does one have to invest a year to make a SIPP worthwhile in the IOM?

 

Since our tax rates are lower than the UK wouldn't one have to invest more than double the amount of a UK higher rate taxpayer to make it worthwhile?

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How much does one have to invest a year to make a SIPP worthwhile in the IOM?

 

Since our tax rates are lower than the UK wouldn't one have to invest more than double the amount of a UK higher rate taxpayer to make it worthwhile?

I suppose it depends on the fee. I think most of them are around £1000 - £1500 per annum (plus VAT) so if you have a pension pot of £150,000 it's over 1% per annum.

 

There are some cheaper versions that I believe start from around £400 a year. So clearly to start one from scratch is initially expensive too.

 

Our tax rates versus the UK are not that important really. The contribution is simply a tax deductable from your earnings so I guess it depends on how much you earn as to how much tax relief you get.

A SIPP isn't really any different from your average private work place defined contribution pension - a lot of which are ending up in Aviva plans here. They can be very expensive depending on the deal your employer has with the IFA that supplied it.

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  • 4 months later...

Are there any online SIPP providers in the IOM (Like they have in the UK)

 

I had a look at the websites of a few local pension companies and they are all quoting a grand or more as a set up fee.

 

Is this set up fee tax deductible for an individual?

 

Do you have to go with the funds they ask you to invest in or do you still have control over it ( like an online share dealing account).

 

Is it still worthwhile now to go for an Isle of man SIPP ?. I assume the yields are even lower now after the brexit vote??

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The SIPP vehicle has nothing to do with yields. It's the underlying investments.

 

They are not all a grand plus. Depends if you want one that can hold property too.

 

I think most of them have Member Direction deeds so in theory you should be able to access an online share dealing platform via the SIPP and buy what you want.

 

The cost isn't tax deductible. Contributions are. I'd imagine none of them are that palatable if you are starting from scratch because the costs will be punitive unless your contributions are massive.

 

Assuming you are starting from scratch - if you have discipline (not to touch the money ) them you'd be better with something like a Halifax Sharebuilder. You can buy shares monthly for about £2.50 per trade from memory. You won't get tax relief of course and dividends are subject to tax but you won't get taxed on the way out either.

Edited by notwell
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Edgewater offer membership of their group SIPP for considerably less than this (administered by Boal) if you just want to use a fund platform as the investment vehicle (disclaimer - I'm a happy customer). They'll still charge you for advice in relation to its setup and also in relation to ongoing investment advice.

 

If I understand correctly, the grand setup cost would be to establish your very own SIPP, which unless you're in the tax capper stratum or want to do very bespoke investmenty things, probably isn't needed.

 

Consensus seems to be that you would need to have >200k in your pension pot to make it worthwhile.

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Edgewater offer membership of their group SIPP for considerably less than this (administered by Boal) if you just want to use a fund platform as the investment vehicle (disclaimer - I'm a happy customer). They'll still charge you for advice in relation to its setup and also in relation to ongoing investment advice.

 

If I understand correctly, the grand setup cost would be to establish your very own SIPP, which unless you're in the tax capper stratum or want to do very bespoke investmenty things, probably isn't needed.

 

Consensus seems to be that you would need to have >200k in your pension pot to make it worthwhile.

Thanks for the information :-). Pm sent.

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Don't forget that as a further deterrent, IOMG charge a 10% inheritance tax on any residual when you die. Personally, I would not bother these days. Acquire yourself a portfolio of everything from property, silver and gold, to stocks and shares. It will give you more in the long run.

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Highly reccommend Boal & Co:

 

https://www.boal.co.uk/pensions.asp

 

Self-Administered Pension Schemes -DB & DC
Design, Administration and Trusteeship

Boal & Co specialises in the provision, administration and trusteeship of overseas self-administered pension solutions for companies, partnerships and individuals. For these clients, we are able to construct and administer bespoke pension arrangements, bringing to bear the full benefits of our independence and impartialit

 

 

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