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Child SIPP

It’s natural to want to provide for your child financially.
Here’s how we can help.

Child SIPPs at a glance

  • A tax-advantaged way to save for your child’s later life
  • Invest up to £3,600 this tax year (you pay £2,880 and we claim £720 tax relief for you)
  • Child gets control at 18 but can’t access their savings until later in life (late 50s)
  • No Capital Gains tax
  • No tax on income generated in the SIPP

IMPORTANT! Read the SIPP Key Facts and our Charges Guide for all the details and before you make up your mind if our Child SIPP Account is right for you. You might also want to read our pensions section.

Download application form

Important information

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.

Before you choose a SIPP, make sure you understand its aims and risks.

A SIPP requires active management and investment expertise. You should make sure you review your investments regularly.

All investments carry an element of risk which may differ significantly. If you are unsure as to the suitability of any particular investment or product, you should seek professional financial advice.

Laws and tax rules may change in the future without notice. The information here is our understanding in April 2018. This information takes no account of your personal circumstances which may have an impact on tax treatment.

Why ATS for your Child SIPP?

find out more

Is a Child SIPP right for your child?

This might seem a very odd thing to think about today on the school run or a play date. But an early start to long term savings could give your child more financial flexibility in later life and the potential for a more comfortable retirement. If this is a priority for you, consider a Child SIPP Account.


Please read our SIPP Key Facts before deciding whether a Child SIPP is right for you and your child.

Download Key Facts

Three easy steps to open a Child SIPP

  1. Decide how much you want to invest.
  2. Go to the Investing Hub to research your investment choices.
  3. Apply online now.


Who can have one?

Any child under the age of 18, as long as their parent or guardian has earnings that count for UK income tax or is resident in the UK at some point during the tax year.

What’s the minimum payment?

£50 (either as a one off or regular payment).

What’s the maximum payment?

£3,600 in the 2018/19 tax year. Including tax relief. You can pay in up to £2,800 and we will claim £720 tax relief for you and put it in your Alliance Trust Savings account.

Who can pay in?

A parent or guardian aged 18 or over must open a Child SIPP, but after that anyone can pay in.

Who do the investments belong to?

The child. They will gain control of the investments when they reach the age of 18 but, based on current tax and pension rules, won’t be able to access them until they are aged at least 57.

What are the tax advantages?

Like a Junior ISA, there is no tax to pay on income or investment growth inside a Child SIPP.

Payments in also benefit from tax relief. Meaning that, to get to the £3,600 maximum payment in each year, only £2,880 has to be paid in directly. The rest (£720) is paid in as tax relief which we claim on your behalf.

What are the charges?

£6.65 a month (plus VAT) to hold a Child SIPP with us. You also pay charges on the investments you hold and for any transactions you ask us to carry out. When the child reaches 18 the charges change to £17.50 a month (plus VAT). Read our Charges Guide for the details.

Anything else I should know?

In theory, more than one pension can be opened for a child, but no more than £3,600 can be paid in across all of them in any one tax year.

Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice.