|
Post Budget Status
SIPPs:
- Sipps can buy commercial property and land now. They will also
be able to buy collective residential property funds.
- SIPPs can not buy individual property but they can buy into
property funds. So, if for instance, you want to invest in a Spanish
Villa you can not do this directly, but you should be able to
buy into a fund which invests in a lot of Spanish property, this
not only keeps your costs down but it spreads the risk so is a
safer investment, so from an investment point of view it is better
than buying an individual property.
- SIPP investment in residential property is far from dead, it
just works slightly differently to how we thought it would. If
you want to invest in property a SIPP is still an ideal investment
vehicle.
- SIPPs can not now buy antiques, wine and various other exotic
investments, but few people would have bought these in any case
so this has little real impact.
- So, SIPPs offer the chance to control your own pension fund
instead of having it managed for you by an insurance company.
- Sipps can be started now by transferring in existing pensions.
If you have old pensions that we are not already looking into,
then please contact us immediately so we can investigate transferring
these for you.
- You can start a SIPP by paying in a monthly amount.
- From April you can pay in up to 100% of your salary, and get
tax relief on all of it!
- Do you hate the idea of buying a fixed annuity when you retire
that dies when you do? Well, SIPPs allow you to drawdown income
and pass the funds to your children when you die. In our opinion
this is a huge benefit and very many people should take out a
SIPP for this reason, whether or not they plan to self invest.
SSASs:
- If you are a Controlling Director you can have a SSAS.
- A SSAS does everything a SIPP does, but has some other advantages.
- The main advantage being that on death there need be no tax
paid at all on your pension.
Pre Budget Status
With effect from 6th April 2006, holders of Self Invested Personal
Pensions (SIPPs) will be able to invest in a far wider variety of
appreciating assets than ever before. These assets, which includes
residential and buy-to-let property abroad, can be invested in with
up to 40% income tax relief for new contributions (e.g. a £10,000
investment could cost as little as £6,000) and allowed to grow free
of capital gains tax and income tax – there are significant inheritance
tax benefits as well.
What is a SIPP?
- A SIPP is a Self Invested Personal Pension
- After April 2006, 'A' Day, you choose where your pension funds
are invested
- Your SIPP can own second properties and buy to lets
- It can even take out a mortgage
- Properties can be in the UK or Abroad
- French property is very suitable for owning within a SIPP
- You can think of your SIPP as a Property Pension
The Tax Advantages
- You get tax relief, at up to 40%, if you pay into your SIPP
- Rental income is free of UK tax
- When your SIPP sells property there is no UK Capital Gains Tax
- Your SIPP does not die with you; the funds can go to your family
- And since the property is not part of your estate you pay less
UK IHT
When you Retire
- Your SIPP can still continue to own properties
- You can take 25% of the SIPP fund free of UK tax
- You never have to buy an annuity
- You control how much income you take in retirement
- The SIPP does not die when you do; funds pass to your dependents
What should you do now?
- The first thing to do is to consolidate your old pensions
- Consolidating your pension funds takes a long time, so start
now
- They will then be in one place so you are ready to buy property
- You can save money now as your pension charges will normally
reduce
- And it is tidier and less confusing to have just one pension
fund
- You can also pay in monthly amounts or lump sums and get full
tax relief
- Take expert advice because
- You need to make arrangements to start a SIPP
- And you need to understand the purchasing process in France
Contact us for further information
|
leasebacks 
