Should bank be deducting Tax from Interest received in SIPP?
I am not sure if interest should be franked. Any ideas out there
Liam
Replies (2)
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Thanks
Frauke
Thanks for that - I have changed the Banks position on this - I know from past experience with this bank that as a default they Frank interest unless they are advised otherwise. I've inherited this in my new job and am trying to sort out.
Liam
SIPP - Tax free
Simply No!
The whole point of a SIPP - is another type of tax free wrapper for a pension. The SIPP administrator should make sure all the rules are followed - or they may be a tax charge - but this would be levied by the HMRC - not a bank.
If you have any doubt - I created an information web site about SIPPs you may want to take a look at: