SELF INVESTED PERSONAL PENSIONS (SIPPS)
We offer a full SIPP backed by the Bank of Scotland Plc.
Self investment was introduced in the Finance Act 1989 and allows investment in a range of different investments for example:-
Equities traded on recognised Stock Exchanges
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Unit Trusts
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Investment Trusts
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Insurance Companies Funds
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Deposit Accounts
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Commercial Property
A SIPP is a personal pension where the Investment Management and Administration can be separated. The assets are held under trust by the Pension Provider with investments being controlled by the policy holder.
COMMERCIAL PROPERTY
It can be advantageous for a SIPP to purchase property as an investment. From 6 th April the SIPP can even purchase property from a “connected party” i.e. it can purchase a property already owned or part owned by a policyholder giving them money from the fund, as long as a commercial valuation is used.
A property owned by a SIPP can be leased and rental payments can then be paid back to the SIPP as investment growth, there will also be no capital gains tax payable on the eventual sale of the property. A number of individuals e.g. the Partners in a firm can pool their pension resources and purchase a property between them.
A syndicate of otherwise unconnected people can club together to purchase a large property as a pure investment.
BORROWING
A SIPP is permitted to borrow to enable it to purchase a property.
The new borrowing rules limit a loan to 50% of net scheme assets e.g. a £200,000 SIPP can borrow a further £100,000 and buy a £300,000 property. Banks usually offer loans over between 5 and 25 years, an arrangement fee of 1.25% of the value is usually made.
UNQUOTED SHARES
A SIPP is now permitted to buy unquoted shares even those in companies connected to the member although if these are used to buy prohibited assets like residential property or esoteric assets (art, stamps, wine etc) heavy tax penalties up to 70% of the fund can apply.The CTTP SIPP offers the following:
| • | Value for money - There are very competitive charges for the plan especially for larger amounts. |
| • | Flexibility - You may contribute as and when you wish (subject to plan minimum levels and Inland Revenue limits related to age and income). |
| • | A full range of vesting options - Phased retirement, drawdown, and open market annuity. |
| • | Efficient administration - An experienced team using a state of the art administration system will run your plan. |
| • | Investment performance - You may invest in the range of investments (including Commercial Property) allowed under Inland Revenue rules. |
| • | Full Strategic advice - many advisers need assistance in how to best structure their clients pensions strategy with all our Directors being a minimum of G60 qualified with 15+ years experience we can give expert guidance. |
Costs
We offer a bespoke service and will often deal in investments that some cheaper services exclude e.g. property both in the UK and abroad and property syndicates.
Initial set up costs:
Initial fee |
£205 |
Annual fee |
£495 (annually in advance) |
Property purchase UK |
£500 |
Property purchase Overseas |
£750 |
Annual Property fee |
£250 or £350 if VAT registered |
VAT Registration fee |
£100 |
Special terms apply for syndicated property purchase. |
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Investment private Co/LLP |
£500 (A valuation/reporting charge £150 p.a. may apply) |
Loan fee |
£350 (Annual £100 administration fee applies) |
Phased/Drawdown |
£150 |
There is no charge for transfers in/out and no transaction charges on investments unless these exceed 8 transaction per annum, excluding initial investments investments the charge will be £15 per investment.
Fees are subject to VATFees are subject to periodic review
The CTTP Self-Invested Personal Pension - Key Features
The CTTP Self-Invested Personal Pension Plan - APPLICATION FORM
Contact Central Tax & Trustee Planning LLP for further information
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