| The
current permitted range of investments for SIPPs include listed
stocks and shares recognised by the Inland Revenue, both UK and
overseas, investment trusts, unit trusts, OEICs, gilts, hedge
funds, derivatives, options and even commercial property, provided
the commercial property is not owned by the member(s).
When
investing in commercial property the SIPP is currently allowed to
take a mortgage of up to 75 per cent of the property's value. You
could then lease the property to a business that you own (on
commercial terms) or to a third party. If you are a business
owner, this can be tax-efficient, since the rent comes out of the
business's pre-tax income and comes into the SIPP as tax-free
investment income.
A
SIPP allows you to control your own retirement fund and you can
freely shop around for the annuity you want to buy when the time
comes. There is the added benefit of being able to sell shares
outside a SIPP to realise capital gains to use the annual
exemption and then buying them back within a SIPP to collect the
tax relief on the way in. Please note you cannot sell the shares
you own directly to the SIPP.
Rule
changes
Moreover, under
the proposed new rules that come into force on 6 April 2006
(A-Day), there are a number of proposed changes which could make
SIPPs even more attractive to the right investor. These include
the possibility to invest in residential property and possibly
enter into transactions with connected persons.
Levels
and bases of, and reliefs from, taxation are subject to change.
Because these investments may go down in value as well as up, you
may not get back the full amount invested. The amount that can be
contributed into pension schemes is subject to set limits. |
|
To
discover if a SIPP arrangement could be appropriate for your
situation, please e-mail or contact us for further information and
to discuss your current and future needs.
|
