Investing in property through a self-invested personal pension

pensions

Keeping property in the family Sipp may be an attractive option under the new pensions regime, however it will require careful management over the long term of the total pension fund assets allocated to each member

From April 6 2006 it will be possible to hold residential property in the tax shelter of a self-invested personal pension (Sipp), borrow against the fund to make the purchase, and pass the property to children free of inheritance tax (IHT). But they must have a Sipp with the same company and share the same underlying trust deed. It will be essential to ensure that property and other tangible investments are appropriate for a client's Sipp portfolio, and to assess the likely complexity and level of any tax charges that may arise where the intention is to make personal use of the assets. ...