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Jersey SIPPs - Self Invested Personal Pensions

Jersey SIPPs are available to Jersey tax payers as an alternative to traditional personal pension plans.

They enable you to look after your own pension fund and may save premiums, costs and commissions. We can help you to set up a dedicated investment holding company for your pension fund. You would be responsible for running the company, can be a director and appoint investment advisors and be the company secretary.

Please note that no members of Alex Picot Trust Company Ltd or its staff are authorised to provide investment advice. You should seek independent financial advice concerning your pension arrangements and the suitability of Jersey SIPPs to your circumstances.

Using a Self Invested Personal Pension (Jersey SIPP) has advantages over a formalised scheme with an insurance company, you can use both. The main advantages are:

- retain control of your investment portfolio and expenses

- choose the age (between 50 and 75) on which you formalise the purchase of an annuity or transfer to a separate drawdown contract
- premiums (cash contributions) can be paid monthly, quarterly, as a lump sum, stopped or altered according to changes in your personal circumstances
- transfers can be made to the Jersey SIPP from any other of your personal pension plans, subject to the regulations effecting such plans
- the Jersey SIPP is completely portable and is not tied to any one employer

Tax effectiveness
- premiums are deductible from your taxable income (subject to limits, see overleaf)
- income received by the Jersey SIPP is Jersey tax free and any Jersey tax deducted at source can be reclaimed

- premiums paid to the Jersey SIPP are not reduced by advisors' commissions and fund management charges
- you will be aware of and can control the expenses of your Jersey SIPP

Please contact Chris Cotillard


Tel +44 (0)1534 753777



The Income Tax (Jersey) Law 1961 allows individuals to look after their own pension arrangements, rather than paying premiums to an insurance company and incurring the related costs and commissions.

The procedure involves setting up a dedicated investment holding company to hold the pension fund (a Self Investment Personal Pension company). The individual, who is responsible for the running of the company, may hold the position of director and can appoint their own investment advisor. A separate company secretary must be appointed.

Premiums, in the form of cash payments, are made into the Jersey SIPP. These reduce income for personal tax purposes, up to the limits prescribed by the Jersey Income Tax Law. At present these limits are the lower of £50,000 or the individual's relevant earnings.

Additional restrictions apply if your earnings exceed £150,000 and in the event that they exceed £200,000 no relief will be given.

If contributions are already being made to an approved scheme, premiums payable to the company will be limited to the difference between the total of such contributions and the maximum contribution allowable (see above).

The purpose of the Jersey SIPP is to provide a fund to purchase an annuity at the time of retirement, which will then provide an annual pension. As with standard pension schemes, an optional cash lump sum may be taken at retirement, leaving less funds to purchase an annuity from a recognised annuity provider. At the moment, depending on individual circumstances, the law allows an amount of the fund to be taken as cash.

As an alternative to the above, the fund may be transferred to a drawdown contract or a retirement annuity trust in accordance with the law relating to such contracts and trusts. These contracts and trusts are not covered further in this guide and appropriate independent financial advice should be sought.

The law allows investment income received by the Jersey SIPP to be free of Jersey income tax. Tax deducted from dividends made by Jersey companies can be reclaimed.

Each year the Jersey SIPP will be required to have accounts prepared by a firm of qualified accountants acceptable to the Comptroller of Taxes, and to pay the Jersey SIPP's annual return fee. These will be the only major expenses of the company.

The main restriction imposed is that no funds or personal benefit may be derived from the company by the individual or their connected parties (spouse, children etc) whatsoever, until the relevant retirement age is reached. This can be any age from 50 to 75, at the choice of the individual. A simple contract between the Jersey SIPP and the individual establishes this and other requirements set out in the law. The Comptroller of Income Tax must approve this contract. The Self Investment Personal Pension company can only be used to hold the annuity fund and for no other purpose.

Frequently asked questions

1. Pension fund transfers
Q. A number of clients have pension funds with recognised pension providers, which, because of poor performance or because they have recently changed their jobs, they would like to transfer into a Self Investment Personal Pension (Jersey SIPP). Are there any restrictions with regard to the type of pensions or amounts that can be transferred into a Jersey SIPP?
A. Transfers between approved schemes are generally permissible, but it would not be possible to transfer out of an occupational pension scheme unless the relevant employment had ceased.

2. Investment policy
Q. Are there any restrictions on the investment policy of these companies?
A. Normal investments in shares, bonds, unit trusts, etc are acceptable. The Comptroller of Taxes has indicated that where other types of investment are proposed he might question whether the main purpose of the investment is to provide a pension. In such a case the validity of the continuing pension scheme might be challenged.  A list of permissible investments is given on the taxes website. 

3. Property
Q. Can the Jersey SIPP invest in property?
A. The Jersey SIPP may be permitted to invest in commercial property under certain circumstances and with the prior approval of the Comptroller of Taxes.  There are limits on the total amount of the pension fund that may be invested this way.

Q.Would the Jersey SIPP be allowed to take a mortgage or borrow funds in order to buy an investment property?
A. No, the Jersey SIPP is not allowed to borrow funds.

Q.Can the property be rented out and will that income also be free from tax?
A. Yes, the property can be rented out at a commercial rent to unconnected third parties and the rent would fall within the exemption of Article 115(fa).

Q.Would it be feasible for the Jersey SIPP to own a property and for the individual to reside there, on payment of rent at market value?
A. No, the Jersey SIPP is not allowed to trade with or to allow the use of the funds' assets by the owners of the company.

4. Private shares
Q. Are investments in private companies allowed?
A. Yes, investment in private companies are allowed. However, the owner of a Jersey SIPP must have no connection with the private company and prior approval from the Comptroller of Taxes is always recommended.

5. Transfer of shares
Q. Can the owner transfer shares that he currently owns in his own name into the Jersey SIPP without the need to sell and repurchase them using a stockbroker?
A. No, all contributions to these schemes must be in the form of cash.

6. Carry back provision
Q. Is there a provision in the law, or concession available, to allow pension or endowment premiums in the first few months of a new year to be related back (i.e. carried back) to the previous year?
A. Contributions and premiums paid are allowed as a deduction in the year in which the sum is paid. There is no provision for back dating such payments.

7. Jersey tax reclaimed
Q. Can the tax deduction at source from any local company dividend be reclaimed?
A. Yes, the tax deduction at source from local company dividends can be reclaimed.

8. Loans
Q. Can the Jersey SIPP make loans?
A.Loans may be made on a commercial basis to unconnected third parties. However, the Jersey SIPP is prohibited from entering into any transaction with the owner or any persons connected to him, and this includes making loans.

Q.Would the Jersey SIPP be allowed to borrow funds in order to make investments?
A. No, the Jersey SIPP is not allowed to borrow funds.

9. Remuneration
Q. Can the owners, as directors, be paid remuneration by the company?
A. No, the Jersey SIPP is prohibited from entering into any transaction with the owners, as directors or otherwise.

Fees and charges

The initial costs include the formation of a Jersey company and the preparation of an Annuity Contract for submission to the Comptroller of Taxes.

Other costs
 - in addition to the standard running costs such as bank and brokers charges etc, the company must also prepare annual accounts which must be submitted to the Comptroller of Taxes.  In the event that Alex Picot Trust Company Ltd are engaged to carry out this service fees will be charged on a time basis depending on the availability of an investment portfolio valuation and a reconciled cashbook (fees for the preparation of a valuation and bookkeeping to reconcile a cashbook will be higher).

 - the company is also required to prepare and submit an Annual return to the Registrar of Companies each year and Alex Picot Trust Company Ltd can assist with this and other administration aspects of the of the company if required.  Please request a fee quote if such assistance is required.

Please note
- if you have any existing pension arrangements, you should have a review to determine the suitability of a self-invested personal pension
- to establish a self-invested personal pension your personal tax affairs must be up to date
- if you run your own pension company, you must be aware that you remain responsible for the pension fund and that the value of investments may fall
- you should seek professional advice if you are not confident of your investment ability

Investment advice

- pension planning is a complex area
- this pack is a general guide for reference only and nothing in this pack should be construed as investment advice

- Alex Picot Trust Company Ltd and its employees do not give investment or pensions advice and are not authorised to do so

- you should seek independent financial advice concerning your pension arrangements and the suitability of a Jersey SIPP to your circumstances

No members of Alex Picot Trust or its staff are authorised to provide investment or pensions advice. You should seek independent financial advice concerning your pension arrangements and suitability of Jersey SIPPs to your circumstances.

The information on this page is correct as at 10 October 2019.  A later version may exist and before relying on the detail contained on this page please contact Alex Picot Trust Company Ltd and request the current version.