The SIPP allowance for the 2016/2017 tax year is a maximum of £40,000. Just like any other type of a pension, a SIPP has defined contribution allowance criteria per year and over a lifetime. It is important to understand that this £40,000 annual allowance is inclusive of government contributions.

An investor can make as many pension contributes as they like over a lifetime, but the tax relief limit stops at £1.25m for the 2015/2016 year, reducing to £1m in 2016/2017.