What are UK’s Self Invested Personal Pensions?

SIPPs were introduced in the UK by the Finance Act 1989 and are individual pension arrangements which, unlike stakeholder or personal pensions, offer holders the opportunity to invest in a wide variety of assets, such as Unit Trusts, shares and property.

They offer more investment flexibility than many other schemes since the pension scheme holder can direct the trustees to invest in any given asset. Changes to rules regulating pension schemes mean that investors can opt to purchase both residential and commercial property in the UK and abroad through their personal pension schemes.

Because they are a way of saving for retirement, just like other pension schemes, you cannot have access to the money until then. SIPPs are available to employees who are not in company schemes, to the self-employed and to partnerships.

What is the link between leaseback investments in France and SIPPs ?

On April 6, 2006, known as A-Day, changes in pensions’ legislation, particularly SIPPs, will come into being.

April 6, 2006, sees the biggest shake up in pensions in the UK for over 100 years. One of the most radical reforms is in self-invested personal pensions (SIPPs), hitherto to a pension trust utilisable, that with certain provisos entitles anyone to purchase residential property overseas through his or her SIPPs and receive favourable tax breaks, as much as 40% for higher rate tax payers.

It will be thus possible to use a SIPP to invest in a residential property in France, even where a mortgage is used to acquire the property, with SIPP allowed to borrow up to 50% of the fund's value.

The acquisition through a leaseback scheme is one of the best solutions as the rent is paid by a top range manager, guaranteed and indexed linked.
The growing value of your SIPP is thus guaranteed.

For specific advice on SIPPs, please go on www.sipp-provider-group.org.uk

For specific advice on top of the range leaseback properties do not hesitate to contact us.