How residential property in pensions can be tax free

PROPERTY

David Gibbins, manager of the TM Hearthstone UK Residential Property fund, explains the options for investors wanting tax free access to residential property via their pensions.

At this time of year, there is a rush to review opportunities to invest in a tax-efficient manner before the April deadline.  For SIPP clients, the numbers involved can be significant.  Investors in the current tax year can put up to £50,000 into a SIPP, which can attract up to 45% tax relief depending on how much an individual earns. They can also carry back their allowance to previous years, resulting in up to £200,000 of contributions and the associated relief. One asset class investors tend to overlook is residential property, as most believe they cannot access this via their SIPP...