These are a type of personal pension designed for people who want to manage their own fund and often have higher charges than stakeholder and personal pensions.
Most SIPPs allow investment in a very wide range of investments such as direct investment in commercial property, individual listed securities in the UK and overseas, fund supermarkets, collective investment funds and unquoted shares.
SIPPs can also borrow up to 50% of the net scheme assets. This can be particularly useful to facilitate commercial property purchase such as an office/shop or make improvements to a property held within the scheme.
HMRC have confirmed that 'in specie' contributions are allowed. Making a contribution in the form of a property or a quoted security (shares) would be acceptable and would be eligible for tax relief.
Due to administrative difficulties in this process where the asset is quoted security some schemes now refuse to accept in specie contributions.
Capital Gains Tax (CGT) may be payable on disposal of the asset if gain is in excess of annual CGT allowance.
Personal PensionsCorporate Financial ServicesSIPPSQROPS |
Information on this website should not be considered as personal advice, if you wish to receive professional advice as to the suitability of a Pension for you, please contact us. Contact us » for more information. |
