Invest using a Self-Invested Pension Plan (SIPP)
A SIPP is a personal pension where the person investing for retirement decides what their pension fund is invested in. SIPPS are open to practically anyone under the age of 75 and " resident" in the UK according to its tax rules.
In the past, the norm was to have your pension managed by a fund manager, who would primarily invest in equities and funds, with little or no input from you. The growth in investments through SIPPs has been rapid over the last few years, as investors have been able to recognise opportunities emerge that wouldn't otherwise be easily accessible to them. With a SIPP, you are in complete control of your pension and its planning.
Most types of pension can be transferred into a SIPP. Many people are surprised to find they may have 'frozen' pensions from previous employers or personal pension schemes that they can transfer.
An investor using a SIPP pension is entitled to full tax relief, meaning that for a 40% tax payer, a £100,000 pension pot would only cost him £60,000 in net contributions.
To be able to use your SIPP to invest in property, your best starting point is to speak to your Independent Financial Advisor ( IFA) who will be able to assist you in moving your SIPP funds to the appropriate provider.
Reasons to purchase using a SIPP
SIPP property purchase provides a unique opportunity to buy land lots or other U.S. property using pensions.
This is a complex area and it does need professional advice. We can arrange for a no-obligation assessment of your existing pension and retirement provision by various industry professionals for potential investors to assess whether their existing pension plans may be transferred into a SIPP.
A SIPP is a personal pension where the person investing for retirement decides what their pension fund is invested in. SIPPS are open to practically anyone under the age of 75 and " resident" in the UK according to its tax rules.
In the past, the norm was to have your pension managed by a fund manager, who would primarily invest in equities and funds, with little or no input from you. The growth in investments through SIPPs has been rapid over the last few years, as investors have been able to recognise opportunities emerge that wouldn't otherwise be easily accessible to them. With a SIPP, you are in complete control of your pension and its planning.
Most types of pension can be transferred into a SIPP. Many people are surprised to find they may have 'frozen' pensions from previous employers or personal pension schemes that they can transfer.
An investor using a SIPP pension is entitled to full tax relief, meaning that for a 40% tax payer, a £100,000 pension pot would only cost him £60,000 in net contributions.
To be able to use your SIPP to invest in property, your best starting point is to speak to your Independent Financial Advisor ( IFA) who will be able to assist you in moving your SIPP funds to the appropriate provider.
Reasons to purchase using a SIPP
SIPP property purchase provides a unique opportunity to buy land lots or other U.S. property using pensions.
- There is tax relief on contributions up to 40% for all cash investments.
- No dividends to be taxed on SIPP property investments.
- No Capital Gains Tax on SIPP property investments.
- Possible inheritance tax benefits with SIPP investments.
- Most types of pension can be accepted into a SIPP.
- A tax efficient way to invest for your retirement.
- SIPPs can be used to pay all legal expenses associated with buying an investment property.
- If the investor is forced to declare bankruptcy, the property will not be classed as an asset.
This is a complex area and it does need professional advice. We can arrange for a no-obligation assessment of your existing pension and retirement provision by various industry professionals for potential investors to assess whether their existing pension plans may be transferred into a SIPP.
