What are SIPPs?
SIPPs or ‘self invested personal pensions’, are investment vehicles that allow the investor control over the assets selected and held within the fund. Coming under UK pension legislation they also have the inherent tax benefits of a personal pension arrangement – in short:
Take relief on contributions (within limits)
No taxation within the fund
Up to 25% tax free cash when benefits are taken
As well as making single or regular contributions, the pension holder can transfer funds from a variety of other pension vehicles into his or her SIPP. This ability to transfer, against a background of uncertainly in financial markets, and concern around charging structures in personal pensions, has seen the popularity of SIPPs rocket in recent months. The option to control your own fund, and clearly see what is happening is an attractive one?
Why SIPPs and property?
If you are controlling your own pension fund, and selecting the assets held within it, the ability to invest in something tangible is a clear advantage. Business owners can use a SIPP to purchase the premises from which they trade, as many of our clients do.
What are the benefits?
When a property is held within a SIPP, the rent received comes into the pension fund adding to the overall asset. Growth in value of the property occurs within the pension fund and is therefore not subject to capital gains tax. The flexibility of payment options from a SIPP mean it is possible to retain the property and draw down an income from the SIPP fund, without cashing in the entire investment.
Why do I need advice from a SIPPs expert?
Buying property with a SIPP is a mass of complications and curve balls for the untrained and inexperienced. Pensions legislation is just about as complex as it can possibly get, and most IFA’s have experience of handling just a handful of SIPPs cases in their careers.
At SIPPs Now we have a panel of SIPPs experts throughout the UK waiting to assist you.
These individuals handle SIPPs cases daily and immerse themselves in the market.
Their clear advice will ensure you do not waste time and do not lose money.
Useful sites: