SIPPs and SSASs: Self-Invested Pensions Explained

If you want more control over where your pension money is invested, a Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) gives you that freedom. Both allow a far wider range of investments than a standard workplace pension, but they come with higher costs, more responsibility, and risks that are important to understand. This guide explains how each works, what you can invest in, the main UK providers, and who these pensions suit.

What Is a SIPP?

A Self-Invested Personal Pension (SIPP) is a type of personal pension that gives you control over the investments held within it. Instead of choosing from a small menu of funds (as with most workplace pensions), a SIPP lets you select from a much wider range of assets.

Key features:

• Tax relief works the same as any other pension — contributions receive 20-45% tax relief, and growth within the SIPP is free of income tax and capital gains tax
• Annual allowance of £60,000 (or 100% of earnings) applies, with carry forward available
• Access from age 55 (rising to 57 in 2028), with 25% tax-free lump sum and the rest taxed as income
• You choose the investments — shares, funds, investment trusts, ETFs, bonds, and (in some SIPPs) commercial property
• Flexible drawdown — most SIPPs offer flexi-access drawdown, letting you take income as and when you need it

SIPPs range from simple, low-cost platforms aimed at DIY investors to full-service arrangements with access to complex investments and bespoke advice.

What Can You Invest In Through a SIPP?

The range of permitted investments depends on the SIPP provider, but typically includes:

Standard investments (most SIPPs)

• UK and international shares listed on recognised stock exchanges
• Investment funds (unit trusts, OEICs, index trackers)
• Exchange-traded funds (ETFs)
• Investment trusts
• Government bonds (gilts) and corporate bonds
• Cash deposits

Non-standard investments (full SIPPs only)

• Commercial property — offices, warehouses, retail premises (not residential property)
• Unlisted shares and private companies
• Agricultural land (in some circumstances)
• Deposit accounts with multiple banks

Residential property cannot be held directly in a SIPP. Attempting to do so triggers punitive tax charges from HMRC. Certain other assets are also prohibited, including tangible moveable property (fine wine, classic cars, art, gold bullion held physically) and loans to members or connected parties.

SIPP Costs and Charges

SIPP charges vary considerably depending on the type of SIPP and provider:

Low-cost / platform SIPPs

• Annual platform fee — typically 0.15% to 0.45% of fund value, sometimes with a cap (e.g. £45 to £200 per year)
• Dealing charges — £0 to £12 per trade for shares; funds often free to buy/sell
• No setup fee in most cases
• Best for: investors who want shares, funds, and ETFs at low cost

Full / bespoke SIPPs

• Annual administration fee — £200 to £500+ per year
• Property purchase fee — £500 to £2,000+ for commercial property transactions
• Additional charges for non-standard investments, in-specie transfers, and HMRC reporting
• Best for: investors who need commercial property or non-standard assets within their pension

Charges have a significant impact over time. A 0.3% annual charge difference on a £200,000 SIPP over 20 years could cost over £20,000 in reduced returns. Always compare total costs, including platform fees, fund charges, and dealing costs.

What Is a SSAS?

A Small Self-Administered Scheme (SSAS) is an occupational pension scheme set up by a company for its directors and key employees. Unlike a SIPP (which is a personal pension for one individual), a SSAS is a trust-based scheme that can have multiple members — typically the directors and sometimes senior staff of a small or medium-sized business.

Key features:

• Multiple members — usually up to a maximum of 11 members, all of whom are typically trustees of the scheme
• Company-sponsored — contributions are made by the sponsoring employer and are an allowable business expense for Corporation Tax
• Collective decision-making — investment decisions are made by the trustees collectively, not by one individual
• Wider investment powers than even a full SIPP, including the ability to lend money back to the sponsoring employer
• Same tax benefits as other registered pension schemes — tax-free growth, tax relief on contributions, 25% tax-free lump sum

What Can a SSAS Invest In?

A SSAS can invest in everything a SIPP can, plus some additional options:

• All standard investments — shares, funds, ETFs, bonds, cash
• Commercial property — the SSAS can buy property that the sponsoring company then rents and uses for its business. The rent is tax-deductible for the company and tax-free within the SSAS.
• Loans to the sponsoring employer — a SSAS can lend up to 50% of its net asset value back to the sponsoring company. The loan must be on commercial terms (market-rate interest), secured with a first charge, and repaid within 5 years with equal capital and interest instalments.
• Joint ventures and pooled investments with other pension schemes

The ability to lend back to the business and hold the company’s own commercial premises makes SSASs particularly attractive for owner-managed businesses that need flexible financing alongside pension saving.

As with SIPPs, residential property is prohibited, and taxable property rules apply to tangible moveable assets.

SIPP vs SSAS: Key Differences

Feature	SIPP	SSAS
Type	Personal pension	Occupational pension (trust-based)
Members	One individual	Up to 11 (directors/key staff)
Set up by	Individual	Sponsoring employer
Contributions from	Individual and/or employer	Primarily employer
Loan back to employer	Not permitted	Up to 50% of NAV
Commercial property	Yes (full SIPPs)	Yes (including company premises)
Governance	Provider-administered	Member-trustees + professional trustee
Regulation	FCA-regulated provider	HMRC-registered, Pensions Regulator oversight
Best for	Individuals wanting investment control	Company directors and small businesses

UK SIPP Providers: An Overview

The UK SIPP market includes a wide range of providers, from low-cost investment platforms to specialist full-SIPP administrators. The following are among the most established providers in the UK market. This is not a recommendation or endorsement of any provider — it is simply a factual overview to help you understand the landscape. Always compare charges, investment options, and service quality before choosing a provider.

Platform / Low-Cost SIPPs

These providers focus on shares, funds, and ETFs at competitive prices. They are best suited to DIY investors who want straightforward investment choices:

• AJ Bell — one of the largest UK investment platforms, offering a SIPP alongside ISA and dealing accounts
• Hargreaves Lansdown — the UK’s largest direct-to-consumer investment platform by assets under administration
• Interactive Investor — flat-fee investment platform with a fixed monthly subscription model
• Fidelity International — global asset manager offering a personal SIPP with access to a wide range of funds
• Vanguard — known for low-cost index funds, offering a simple SIPP focused on their own fund range
• Charles Stanley Direct — established stockbroking firm with an online SIPP platform
• Bestinvest — online investment platform owned by Evelyn Partners, offering a SIPP with fund and share dealing
• InvestEngine — ETF-focused platform offering a low-cost SIPP built around model portfolios
• Freetrade — app-based platform offering commission-free share dealing within a SIPP
• Dodl by AJ Bell — simplified, app-based SIPP from AJ Bell aimed at beginners

Full / Specialist SIPPs

These providers cater to investors who need access to non-standard investments such as commercial property, unlisted shares, or bespoke arrangements:

• Barnett Waddingham — actuarial and pension consultancy offering full SIPP and SSAS administration
• Curtis Banks (now part of FNZ) — one of the largest specialist SIPP administrators in the UK
• Dentons Pension Management — specialist in full SIPPs and SSASs, particularly for commercial property and non-standard assets
• Suffolk Life (part of Curtis Banks/FNZ) — specialist SIPP and SSAS provider
• Yorsipp — York-based specialist SIPP and SSAS administrator

SSAS Specialists

SSASs require specialist administration due to the trust-based structure and regulatory requirements:

• Mattioli Woods — wealth management firm with specialist SSAS administration services
• Xafinity (now XPS Pensions Group) — pension consultancy offering SSAS administration
• Dalriada Trustees — independent professional trustee firm that also administers SSASs
• Hartley Pensions — SIPP and SSAS provider focused on non-standard pension investments
• IPM Pensions — specialist SSAS and SIPP administrator for small businesses

When choosing a provider, consider:

• Total annual cost — platform fee plus fund charges plus dealing costs
• Investment range — does the provider offer the assets you want to hold?
• Service quality — online tools, customer service, reporting, and ease of use
• Transfer process — how smoothly can you transfer existing pensions in?
• Drawdown options — flexibility and cost of taking income in retirement
• FCA or HMRC registration — ensure the provider is properly authorised

Who Suits a SIPP?

A SIPP may be appropriate if you:

• Want to choose your own investments rather than relying on a default workplace fund
• Have built up multiple old workplace pensions and want to consolidate them into one place
• Want access to a wider range of investments (individual shares, ETFs, investment trusts)
• Are comfortable making your own investment decisions (or are willing to pay an adviser to help)
• Want to hold commercial property within your pension

A SIPP is not necessary for everyone. If you have a good workplace pension with low charges, employer matching, and a suitable default fund, adding complexity through a SIPP may not improve your outcome. Many people use a SIPP alongside their workplace pension — keeping the workplace scheme for employer contributions and using a SIPP for additional savings.

Who Suits a SSAS?

A SSAS is typically suitable for:

• Company directors who want maximum investment flexibility and the ability to use pension assets within their business (e.g. buying commercial premises, lending to the company)
• Small business owners who want a tax-efficient way for the company to make pension contributions while retaining some use of the funds
• Family businesses where multiple directors want to share a single scheme
• Businesses with significant property needs — buying your business premises through the SSAS means rent payments are tax-deductible for the company and tax-free within the pension

SSASs involve higher setup and ongoing costs than SIPPs (typically £1,000 to £3,000 per year in administration fees), trustee responsibilities, and regulatory obligations. They are not appropriate for small pension pots or individuals without a sponsoring employer.

Important Risks and Considerations

Before opening a SIPP or SSAS:

• Investment risk is yours — you bear the consequences of poor investment decisions. There is no default fund or automatic risk reduction as you approach retirement (unless you set this up yourself).
• Pension scams — the FCA and The Pensions Regulator warn that SIPPs and SSASs are sometimes used in pension scam arrangements, particularly those offering “guaranteed returns,” overseas investments, or early access before age 55. If it sounds too good to be true, it is almost certainly a scam. Check the FCA’s ScamSmart tool before making any pension transfer.
• HMRC scrutiny — SSAS schemes are subject to detailed HMRC reporting requirements. Transactions that breach the rules (unauthorised payments, taxable property, connected-party issues) can trigger severe tax charges of up to 55%.
• Complexity — full SIPPs and SSASs are more complex than standard pensions. If you do not need the additional investment options, a simpler arrangement may serve you better.
• Professional advice — given the complexity and the sums typically involved, taking regulated financial advice before opening a SIPP or SSAS is strongly recommended. This is especially important for SSAS arrangements involving company lending or property purchase.