Key takeaways
- On a £50,000 SIPP held in funds, annual platform charges range from £71.88 at interactive investor to £175 at Fidelity and Hargreaves Lansdown, checked on 6 November 2026.
- Flat-fee SIPPs, such as interactive investor's £5.99 a month Core plan for portfolios up to £100,000, cost the same whatever the pot is worth.
- Vanguard charges £4 a month below £32,000 and 0.15% above, capped at £375 a year.
- Basic rate tax relief of 20% is added to SIPP contributions automatically; higher and additional rate taxpayers claim the rest through Self Assessment.
- You get tax relief on contributions up to 100% of your earnings, or £2,880 net (£3,600 gross) a year if you have no earnings.
- The pension annual allowance is £60,000 for 2026/27, with unused allowance carried forward from the previous three tax years.
- The normal minimum pension age rises from 55 to 57 on 6 April 2028.
The cheapest SIPP provider depends on how much you hold and what you invest in. Percentage-fee platforms are cheap for small pots, while flat-fee platforms win as your pension grows. We checked charges at AJ Bell, Fidelity, Hargreaves Lansdown, interactive investor and Vanguard on their own websites on 6 November 2026, and list them alphabetically without ranking them.
What is a SIPP?
A SIPP (self-invested personal pension) is a personal pension where you choose the investments yourself. It suits freelancers, contractors and sole traders who have no workplace pension, and anyone who wants more choice than their employer’s scheme offers.
Contributions get tax relief, investments grow free of income tax and Capital Gains Tax, and you can usually take up to 25% tax free from age 55. That age rises to 57 on 6 April 2028, under the government’s normal minimum pension age policy.
SIPP charges compared
This table shows each platform’s own charge for holding funds, and what it would cost a year on £50,000 invested in funds. It excludes fund charges and dealing fees.
| Provider | Charge for holding funds | Yearly cost on £50,000 |
|---|---|---|
| AJ Bell | 0.25% up to £250,000 | £125 |
| Fidelity | 0.35% up to £250,000 | £175 |
| Hargreaves Lansdown | 0.35% up to £250,000 | £175 |
| interactive investor | £5.99 a month (Core, up to £100,000) | £71.88 |
| Vanguard | 0.15% at £32,000 or more, capped at £375 | £75 |
Fees drop on larger pots at the tiered platforms. For example, AJ Bell charges 0.10% on funds between £250,000 and £500,000 and nothing above that.
What each provider charges
AJ Bell. AJ Bell’s SIPP charges 0.25% on funds up to £250,000, 0.10% from £250,000 to £500,000 and nothing above. Shares cost 0.25%, capped at £10 a month. Online fund deals cost £1.50 and share deals £5, or £3.50 if you made 10 or more share deals the previous month.
Fidelity. Fidelity charges 0.35% on total investments up to £250,000 and 0.20% from £250,000, with no charge above £1 million and a £2,000 yearly maximum. Under £25,000 without a regular savings plan, you pay a flat £7.50 a month. Shares, ETFs and investment trusts are capped at £7.50 a month. Fund dealing is free and online share deals cost £7.50.
Hargreaves Lansdown. HL’s SIPP charges 0.35% on funds up to £250,000, 0.25% to £1 million, 0.10% to £2 million and nothing above. Shares cost 0.35%, capped at £12.50 a month. One-off online fund trades cost £1.95, and share trades £6.95 (or £3.95 after 20 trades the previous month).
interactive investor. ii charges a flat monthly fee covering its SIPP: Core £5.99 (portfolios up to £100,000), Plus £14.99 and Premium £39.99. UK share trades cost £3.99 on Core and Plus, and £2.99 on Premium. FX charges are extra.
Vanguard. Vanguard’s Personal Pension charges £4 a month under £32,000, then 0.15% a year capped at £375. You invest in Vanguard’s own funds, whose costs range from 0.06% to 0.79% a year. Vanguard says there are no extra fees to start drawdown.
Which SIPP type applies to you?
Choose the fee structure that fits your pot size and how you invest.
- If your pot is under about £20,000 and you hold funds, a percentage fee is often cheaper than a flat fee. Work out both on your balance.
- If your pot is over £50,000, a flat fee such as ii’s usually costs less than 0.25% or 0.35%.
- If you hold mostly shares, ETFs or investment trusts, compare the monthly caps: £7.50 at Fidelity, £10 at AJ Bell and £12.50 at HL.
- If you want a low-cost tracker portfolio only, Vanguard’s own-fund range keeps things simple.
- If you trade often, dealing fees will matter more than the platform charge.
How does tax relief work on a SIPP?
SIPPs use relief at source: you pay in from taxed income and your provider claims 20% basic rate relief from HMRC and adds it to your pot. GOV.UK says higher and additional rate taxpayers claim the extra relief on their Self Assessment tax return.
| Limit | 2026/27 figure |
|---|---|
| Relief limit | 100% of your annual earnings |
| No earnings | £2,880 net (£3,600 with relief) |
| Annual allowance | £60,000, with three years’ carry forward |
| Tapered allowance | Applies over £200,000 threshold income and £260,000 adjusted income |
Our pension tax relief calculator shows how much relief you get. For more on pensions for the self-employed, read self-employed pensions. Company directors can also pay in through their company; see director pension contributions.
Changes coming to pensions
Two dated changes affect SIPP savers. From 6 April 2027, most unused pension funds count towards your estate for Inheritance Tax; see how to tell HMRC someone has died for what this means for executors. The government has also announced a cap on salary sacrifice pension contributions from 2029, covered in our salary sacrifice cap news post.
How to open a SIPP
- Check your current pensions. Look at the charges on any old workplace pensions before you transfer them.
- Compare charges on your own balance. Use the table above as a starting point.
- Open the SIPP online. You will need your National Insurance number and bank details.
- Set up contributions. Regular monthly payments are usually free to invest.
- Claim higher rate relief. Include gross contributions on your Self Assessment return.
Frequently asked questions
Which SIPP has the lowest fees?
It depends on your balance. On £50,000 in funds, interactive investor’s £5.99 Core plan (£71.88 a year) and Vanguard’s 0.15% (£75) cost least of the five we checked on 6 November 2026.
How much can I pay into a SIPP?
You get tax relief on contributions up to 100% of your earnings, within the £60,000 annual allowance. With no earnings you can pay in £2,880 a year and get relief to make it £3,600.
When can I take money from a SIPP?
From age 55 now, rising to 57 on 6 April 2028.
Is a SIPP worth it for the self-employed?
For a sole trader without a workplace pension, a SIPP is one way to get tax relief at your marginal rate on retirement saving. Compare charges carefully, as they compound over decades.
Can I transfer a workplace pension into a SIPP?
Usually yes, but check exit fees and any guaranteed benefits before you transfer, and take regulated advice for defined benefit pensions.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.