Pensions

Self Invested Personal Pensions (“SIPPS”) are both tax efficient and flexible.

What is a SIPP?

A SIPP allows an individual to invest in the following assets:

• Equities (Stocks and Shares);
• Unit Trusts;
• Commercial Property; and
• Endowment Policies and Gilts.

A SIPP can lease commercial or retail property that it holds in trust for a pension member directly to the pension member or indirectly to the pension member’s company. Businesses frequently decide that it is preferable to lease their premises from their own pension fund rather than from a third party. This makes property or land one of the most popular investments.

Benefits

The main benefit of a SIPP is that incoming rent from property held in a SIPP fund accumulates tax free. Furthermore, capital gains tax will not apply (provided that the property remains in the SIPP). This is clearly a significant advantage.

With our experience in dealing with such transactions, although we are unable to provide investment advice, we are happy to assist in any SIPP property related transactions.