Self Invested Personal Pensions (SIPP’s)
The self-invested personal pension (SIPP) itself is a pension wrapper that holds investments until you retire and start to draw a pension income. SIPP’s give you the freedom to choose and manage your own investments.
Why invest in a SIPP?
It is a structured means of saving for your retirement
Tax relief
You will receive tax relief at your highest rate on payments paid into your plan by you. (Special HMRC rules apply for annual incomes over £130,000). Non taxpayers can contribute up to £3,600 a year, and still receive basic rate tax relief.
Tax efficient
Investments in your pension will grow free of UK capital gains tax.
Protection
Your pension fund is usually protected from your creditors, should you be declared bankrupt.
Tax free cash
From the age of 55 you can take a 25% tax-free lump sum from your pension fund, which you are free to invest or spend as you wish.
Investments that you can hold in your SIPP:
Most SIPPs allow you to select from a range of assets, such as:
- Commercial property (such as offices, shops, factories and hotel developments).
- Particular stocks and shares
- Unit trusts & Investment trusts
- Insurance company funds and Traded endowment policies
- Deposit accounts, National Savings products and Government securities
For example, you could have a combination of Hotel Resort property, Unit Trusts and Deposit Accounts, all in one SIPP.
SIPP investors can also purchase (some kinds of) overseas property through their pension, where the value of the property itself, along with any rental income and capital growth is held within the pension fund.
In order to become SIPP-approved a development must pass strict HMRC guidelines, before being accepted by the pension provider for clients. A SIPP-approved Overseas Property Investment often takes the form of a Hotel Resort, and the SIPP can buy individual hotel rooms, apartments or villas. The properties are then fully managed, maintained and marketed for you, with the aim to produce rental income and capital growth. In order to fully benefit from the tax advantages of the property in a SIPP, HMRC rules dictate that you cannot use the property yourself.
For more information and to view a range of properties fully approved for this purpose, please visit www.regencyworldwide.co.uk investment properties.
Investment risk
Everyone’s goals and attitude towards investment risk are different. Your adviser will help you establish your attitude towards risk and will consider whether you have the right mix of asset types within your pension and investment portfolio.
A SIPP is not necessarily suitable for every investor and all investments carry risk to a greater or lesser degree. Individual advice should be sought from a qualified Independent Financial Adviser before making any decision to invest or transfer pension funds. Please contact us to arrange an appointment.
Costs & values
Due to its flexible nature, the cost of running the SIPP may be more than a regular personal pension. The value of your investment can fall as well as rise and property is no exception to this.
Find out more today. Arrange a free first consultation with no obligations. Simply complete our online form and we’ll contact you to arrange an appointment. We are conveniently located in Hurstpierpoint, Sussex, just minutes from the mainline station at Hassocks and close to Haywards Heath, Burgess Hill, Crawley and Brighton.
Regency Financial Resources Ltd is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate Buy-to-Let Mortgages, Overseas property sales and Overseas mortgages. There may be a fee for mortgage advice which could be in the region of £250. Your home may be repossessed if you do not keep up repayments on your mortgage.
