Does the IE SIPP have the option to make gross contributions? I.e. contributions that will not then be grossed up by 25% by HMRC.
If not, I’d like to request this feature. The SIPP is a good tax-wrapper, and with the recent changes in CG taxation (lower allowance, higher rates), investing in a SIPP vs a GIA can make more sense, even if those funds are not pensionable income. It would be great to be able to get these funds into the IE SIPP gross.
Why would you not want the 25% from HMRC?
If you are contributing more than your pensionable income, you would have to give HMRC the money back.
This is an interesting idea.
For myself personally, I’d stick the HMRC rebate into an MMF and then repay them the money when they came knocking 
Admin burden, but at least you would be compensated for it (in a small way).
this is not financial advice
Yes, it’s simply the admin burden I’m trying to avoid. And you’re absolutely right, I can earn the interest. It’s even tax free interest, since the HMRC money goes into the pension, but I pay the rebate out of money in a GIA.
In any case it’s a very niche need, that will not be of use to the vast majority of users.
Hello!
At present, we don’t have the ability to accept personal contributions that do not receive tax relief but, with some development, we could accommodate them. Please note though that pension income is taxable so your pension withdrawals (excluding tax free cash) will be subject to income tax. This is in effect double taxation as you wouldn’t have received tax relief on the funding contributions. Does that change your view?
I’m fully aware of the taxation rules regarding GIAs and SIPPs. It’s easy to come up with scenarios where a SIPP is better than a GIA, even for a gross investment, taking into account all taxation. So no, it doesn’t change my view.
That said, I do not hold a SIPP with IE, and won’t until you allow transfers from my current provider (not Vanguard), and my current provider does allow gross contributions. Also, this is a very niche need, and it is perfectly possible to pay the funds in to a SIPP net, and simply repay HMRC through self assessment.
Hello
Is there any update on whether IE will consider doing this, is there an official way to request such a service? It would be nice to be able to give personal contributions and simply declare not to accept tax relief on it. So IE does not then apply for the tax relief.
The double taxation would not change my view, the compounding growth makes up for it in the long run. So i want to contribute more to my SIPP early on.
Welcome, @TheCelt !
Yes! Money in GIAs also gets taxed twice too anyway, first as income, then on the gains. As the gap between CG and income tax rates narrows (as it has been of late), the untaxed compounding of interest and dividends in a SIPP can actually make up for the slightly higher tax rates on drawdown, if you’re investing for long enough.
That said, if you have a lump sum you want to put in a SIPP, could you not pay it in over a number of years, at a rate of 100% of pensionable income each year? Unless your pensionable income is very low and will potentially remain so for the long term, that would seem to be a better option.
In my case some of the money isn’t double taxed it is a lump sum i want to add in to grow the pot faster since i am young. I am on low income basically in the non earner category and will likely be for a few years so it is hurting my ability to grow a pension.
So i see no reason why they don’t support personal contributions if we can just declare not to recieve tax relief from it. It cannot be that difficult to implement such a feature. HMRC doesn’t state it must be limited to the tax relief amount so it seems to be a limit IE did themselves (other providers do aswell) which is very frustrating.