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
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.