What now for Sipps?

pensions

The government has removed the tax breaks from some of the more highly publicised Sipp investments such as residential property, wine and art, so do they still have anything to offer, and what are the problems with investing in them? Two advisers give their view

All is not lost despite government changes. Gordon Brown may have shattered some Sipp dreams for property investors last December, but the appeal of Sipps under the new simplified pension regime introduced in April is still likely to be significant. The aim of the simplification regime is to encourage greater pension provision by individuals. As soon as the Government believes that any abuse of this system is taking place they will take steps to shut it down. We have already witnessed pre-emptive strikes to stop tax abuse when it comes to residential property and other investment assets th...