SIPP ISA and PEP

When putting an investment portfolio together, the most important aim is to create an asset allocation and stock selection strategy that will offer positive returns, while minimising risk. However, it is an added bonus if you can also protect your investments against tax and income on capital gains.

This can be achieved in a number of ways, including through the use of pensions, including Self Invested Personal Pensions (SIPPs), Individual Savings Accounts (ISAs) and their predecessors Personal Equity Plans, which are expected to be brought within the ISA regime from April 2008.

Direct Sharedeal offers clients access to the highly aclaimed Lifetime SIPP which allows investors tremendous flexibility over assets selection as well as all the tax benefits that apply to all pensions.

• Tax relief at your highest marginal level up to your entire earnings from trade, profession or employment(subject to an annual limit set at £225,000 for 2007/8 and rising thereafter);
• No UK tax within the fund (except the withholding tax on dividends);
• Tax free cash up to 25% of the entire fund, as a pension commencement lump sum (PCLS) at any time age 50 (rising to age 55 in 2012).

An income can also be taken in a highly flexible way starting at the same time as the PCLS is taken, or an income deferred until age 75. If drawn directly from the pension fund, the amount of income can be varied each year within very broad limits.

ISAs similarly enjoy freedom from UK income and capital gains tax (again other than the withholding tax on dividends) and while there is no tax relief on the money invested, neither is there any tax charged on the money drawn out, whether as a lump sum or an income.

Trading CFD in SIPPs

Recently the rules governing Self Invested Personal Pensions have changed. As a result Direct Sharedeal are one of the first CFD providers to offer our clients the ability to trade CFD in their SIPPs. We hope you’ll find the ability to add gearing to your SIPPs, and so give yourself more leverage in your trading, useful. Trading CFD and spread bets through Direct Sharedeal dealing team is entirely composed of ‘ex-market makers’ who use their experience and their contacts in the marketplace on your behalf. As a Direct Sharedeal customer you will have access to call our Spread Bet and CFD trading desk at any time. We can discuss the latest news about a stock or just chat about the state of the market.

Direct Sharedeal undertakes both CFD and Spread Bet Services for Direct Sharedeal clients. CFDs and Spread Bets are leveraged products and carry a high level of risk to your capital. Due to the leverage offered it is possible for you to incur losses in excess of your initial capital. Due to their very nature these products may not be suitable for all investors. Therefore ensure you fully understand the risks involved, and if in doubt we encourage you to seek independent advice. Markets can fall as well as rise and past performance will not necessarily guarantee future performance. You may get back less than you invested or be required to make additional margin payments.

We aim to provide a friendly and proffesional service that always has time for you. If you have any queries about spread betting or CFD trading or would like an application form please email london@directsharedeal.com or call us on +44 (0) 207 337 2670.