SIPPs
The use of Self Invested Personal Pensions (SIPPs) has grown significantly in recent years as increasing numbers of sophisticated investors have taken control of their pension provision.
Recently SIPPs hit the headlines as more eclectic investments such as wines, yachts and secondary residences were considered as being eligible as SIPPs investments. However in December 2005, these were disqualified as SIPP investments. Nonetheless SIPPs have grown in popularity as they have retained the generous tax breaks available in traditional pension schemes whilst allowing the investors greater control of their pension fund investments. This freedom means that funds within SIPPs can be managed in relation to the investor's other assets enabling them to keep a balanced portfolio or Global Asset Allocation Model.
One aspect of SIPPs that has proven very popular is the ability to invest in commercial property, which allows the investor to earn a rental income free from income tax, to reclaim VAT on investments in the property and to sell the property free of Capital Gains Tax. However, since April 2006, fundamental changes to the tax advantages of pension savings have meant that any pension funds valued at more than £1.5 million may have to pay a tax charge, greatly affecting the expected retirement income.
To ensure that you have the pension plan that will best suit your goals and circumstances, PK Group's pension specialists will help you review your retirement plans and recommend the best options that may include SIPPs, if appropriate for you. We can select and manage SIPPs and source high quality properties through our Property Investment Partners, for either individual or syndicates purchases, if required.
For specialist advice; please contact your PK Advisor.
If you have not worked with us before, please contact us and one of our specialists will be able to assist you immediately.
