A SIPP is a Self-Invested Personal Pension - a type of personal Pension scheme.

The SIPP itself is a pension 'wrapper' that holds investments until you retire and start to draw a pension income.

SIPPs are designed for people who want to manage their own fund by dealing with, and switching, their investments when they choose. They may have higher charges than other personal pensions or stakeholder pensions. As with any pension fund, you cannot take money from the fund until age 50 (rising to age 55 by 2010).

Allowable Classes

Most SIPPs allow investment in a range of assets including commercial property.

There was speculation that residential property would be allowed in SIPPs, although Gordon Brown ruled this out in the Pre-Budget report in 2005.