What is a SIPP?

A self-invested personal pension

A SIPP, or Self-Invested Personal Pension, is a type of UK personal pension.

Like other pensions, it is a long-term tax-advantaged wrapper. The 'self-invested' element generally means the account offers a range of investments that the pension holder can choose from, subject to the provider's rules.

Pension tax relief

Eligible personal contributions can receive pension tax relief. The amount of relief available depends on the individual's circumstances and UK tax rules.

For 2026/27, the standard pension annual allowance is £60,000, but a lower allowance can apply in some situations, including for some high earners and people who have flexibly accessed pension benefits.

Tax relief on personal contributions is also subject to separate earnings rules.

Access is restricted

Unlike an ISA or GIA, pension money is normally locked away until the applicable minimum pension age or another permitted condition is met.

Rules on how pension benefits are taxed when withdrawn also apply.

Investment choice still matters

A SIPP is a wrapper, not an investment. The investments held inside it determine the investment risk and whether the portfolio follows a particular Shariah methodology.

Pension rules are detailed and can change. This guide is general education, not pension, tax or financial advice.