self invested pension | what is a sipp

Self Invested Personal Pensions are the fastest growing retirement vehicle in the market place, there are becoming a mainstream product in UK investment planning.

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Do you need to take pension benefits?
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For impartial, independent advice on SIPPs or Pensions contact us now.

Property

Private Company Shares

Quoted Shares

Ethical Investments

Overseas Property

Residential Property

Unusual investments

Qrops

SIPP rules allow for the purchase of commercial property. We regularly deal with clients looking to use their SIPP to buy retail units, factories, professional premises, and offices. SIPPs are ideal for this purpose. There are however a number of key points that need to be considered:- The SIPP will have to charge a market rate to the tenants of the commercial property. Therefore if you are buying a property to run your business from there is no cash flow benefit. The major advantage is that the rental is paid back into your pension fund. The value of your fund together with any additional mortgage you take (limited to up to 50% of the fund value), should be sufficient to cover the purchase price and purchase costs on the commercial property leaving a float in the SIPP fund to handle initial mortgage payments and other ongoing costs. If you have insufficient value within your pension fund it is possible to pool your SIPP with others to buy a commercial property.

You can use your SIPP funds to make an investmentment in up to 20% of a Private Limited Companies shares.

You can use your SIPP to make your own decisions and investments in quoted company shares.

If you want to contribute to the welfare of the planet whilst generating a good return for your retirement funds, we can offer specialist ethical SIPP funds where your money is invested in sustainable farming projects across the world. Through our specialists you can invest in: Bamboo Production Sustainable Hardwood Purchase and leaseback of farm land Sustainable acriculture

Buying Overseas properties with a SIPP property We regularly get enquiries regarding the purchase of Overseas properties via a SIPP. For one off overseas properties such as Villas and Apartments (particularly if personal use is considered), it is not possible to use a SIPP. In certain selected developments such as those run by Harlequin in the Caribbean it is possible to use a SIPP, and we can assist. For this reason we do not deal with enquiries for the purchase of Overseas property via a SIPP unless through Harlequin in the Caribbean.

Residential Property cannot be held in a SIPP unless in very particular circumstances for example where the major of the property is Commercial and the Residential element is incidental.

Use your SIPP to hold traded endowment policies, antiques, wine, and many other unusual investments.

Non UK residents can get taxation benefits through a Qualifying Recognised Overseas Pension Scheme. If you are living, and intend to stay outside of the UK you should be looking at the value of a QROPs scheme.

House and Farm

The client, who is QC, bought an estate in Scotland. The house and cottages in his own name, farm buildings and land in his SIPP. The farm buildings were converted to residential use and sold before habitable, therefore no CGT was paid in the SIPP. The land was removed as tax free cash, and reinvested to provide income in retirement.

London Flat

The client, a private doctor operates from a flat in London SW1. He transfers 10% of the surgery value to his SIPP each year giving a tax saving of £80,000. His income accrues in the pension fund. He will take this out as tax free cash after five years. The tax saved on money going into the SIPP is £400,000. The tax saved on money coming out of the SIPP is £120,000.

Listed Shares

The clients, a couple, own shares in a Plus Market company. Each draws £60,000 per annum. Each transferred £16,000 worth of shares to a SIPP. With a purchase of £4000 to save each £8,000 of tax. This gives them tax benefits with no loss of control.

Property Collectives

We arrange for up to 60 clients to buy shares in large properties as tenants in common. These investments may include residential properties, care homes, and retirement homes as well as industrial and office premises. Property investment with control and spread of risk.