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Services > Financial Services >
Self Invested Personal Pensions (SIPPs)
Flexible Pension Planning
Pension planning is an extremely tax efficient way to secure your future retirement fund, especially in the current economic climate. With the Government changes in legislation which were instigated in April 2006 there are many new ways to ensure your plan is effective.
Where you can invest
Type of Investment |
Personal
Pension |
SIPP |
Commercial property |
NO |
YES |
Land purchase |
NO |
YES |
Unit trusts |
NO |
YES |
Open ended investment companies (OEICs) |
NO |
YES |
Investment trusts |
NO |
YES |
Insurance company managed funds and their range of funds run by other managers |
YES |
NO |
Stock and shares on a recognised stock exchange |
NO |
YES |
Individual UK equities |
NO |
YES |
Overseas equities eg. US or European shares |
NO |
YES |
UK gifts |
NO |
YES |
Bonds and other fixed interest securities |
NO |
YES |
Permanent interest bearing shares (PIBs) |
NO |
YES |
Cash and deposit |
YES |
YES |
Commercial property
Purchasing commercial property using a SIPP has become an attractive method of saving for retirement due to the numerous benefits available. Not only will the pension scheme benefit if the property value increases, it will also receive rental income from the tenant and there is no Capital Gains Tax liability on potential growth in value.
While most people associate commercial property with shops offices and warehouses, here are some examples of the types of property that have actually been put into SIPPS:-
- A museum
- Car parking spaces
- An Indian restaurant
- Forestry and agricultural land
- Hotel rooms in the Turks and Caicos islands
Land purchase
HMRC rules do allow land to be held within a pension scheme. This can be agricultural land, development land or even commercial forestry. The basic principles of property purchase apply in the same way for land as they do for other property, with a few subtle differences.
- It is not essential that the land is occupied by a tenant
- If rent can be paid such as for grazing rights – then this must be paid to the pension scheme
- Land is often purchased with the intention of building house or for other residential planning permission being obtained while the pension scheme owns the land, and the increase in value that can be obtained can be very attractive, particularly when sheltered from Capital Gains Tax within the pension scheme
The rules surrounding land purchase and when it could be considered taxable can be quite complex. For example, land purchased adjacent to the pension scheme member’s own residential property could be viewed as an extension of their garden and therefore taxable.
We would like to meet with you to discuss how a SIPP may be able to help you to:-
- Reduce your income tax
- Potentially increase your retirement provision
- Obtain ‘FREE’ pension contributions (Tax Relief)
- Potentially reduce Capital Gains Tax
- Reduce your borrowing
- Protect your existing commercial premises from taxation/creditors
- Potentially increase your disposable income
As cba is a firm of Chartered Accountants and Independent Financial Advisors, we have been able to help people with both their retirement plans and taxation liabilities.
Require further information?
If you would like more information or would like to ask us a question then call us on 01482 881919.
To ask us a question online click here.
cba Financial Services Ltd provides advice on mortgages, investments, pensions & protection and is authorised & regulated by The Financial Services Authority. Your home is at risk if you do not keep up payments on a mortgage or other loans secured on it. Written details are available on request.
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