When doing research on which type of SIPP is best for you to take out, there are two different versions that you can choose from. These are an International SIPP and a ‘standard' SIPP. But what is the difference between these two?
The term ‘international SIPP' was coined to identify those who now reside abroad but still have access to their UK pensions. Both ‘types' of SIPP are pension schemes that are UK-registered and are FCA-regulated. They are also both subject to the same drawdown options and rules.
In other words, they are the same thing. So why is there a distinction?
Well, most UK SIPP providers no longer accept residents who live outside of the UK as policyholders. This has since been enhanced even more by Brexit since the UK is no longer part of the European Union.
With this in play, the market naturally opened up to start offering SIPPs to non-UK residents, which created the International SIPP.
Are there any additional complexities that come with being a non-UK resident?
The majority of UK SIPP companies won't consider accepting a client who is not a UK resident into one of their SIPPs. However, there are some expat financial advice companies that will assist non-UK residents whilst complying with the regulatory standards. Just because somebody doesn't live in the UK anymore doesn't mean that they should lose access to a pension scheme.
2. Additional Administration
It is exceedingly more difficult to look after international clients compared to those who still reside in the UK. There are many UK companies that would be put off with all the additional admin involved, language and culture barriers, as well as differing time zones that they would also need to overcome. An international SIPP company would still offer you the same level of care as a ‘standard' SIPP company would for their clients.
3. Managing More Complexities
An international SIPP actually comes with additional layers that make the process more complex as they are not a part of the typical domestic marketing and, therefore, are offputting for some pension providers. Some of these complexities include currency flexibility and knowledge of dual taxation agreements.
An international SIPP provider is perfectly able to facilitate this type of request as it requires additional experience, expertise and knowledge that these companies possess.
In summary
Rounding up, an international SIPP is different to a ‘standard' SIPP as it is offered to non-UK residents. International SIPP providers go the extra mile to ensure your SIPP account by providing accessibility to all and managing additional admin and complexities that come with an overseas resident application.
Visit: https://www.thewealthgenesis.com/international-sipp