Your IndustryAug 27 2015

Guide to Sipps

pfs-logo
cisi-logo
CPD
Approx.60min

    Guide to Sipps

      pfs-logo
      cisi-logo
      CPD
      Approx.60min
      Search supported by

      Introduction

      By Emma Ann Hughes
      twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon

      Ultimately a Sipp is a personal pension where investors choose to make their own investment decisions.

      In recent years the Sipp market has evolved into two distinct parts: the platform market, providing investors with more standard investment choices centred around collectives, and the independent market, mostly made up of the original bespoke providers that offer open access to a much wider investment market and assets not normally available through a platform.

      HM Revenue and Customs does not provide a list of allowable investments, but deems certain types of asset, such as residential property or vintage cars, as taxable property therefore making them unattractive for investment within a pension.

      As a result of this treatment from HMRC, the majority of Sipp providers will not permit investments that risk being defined as taxable property.

      A Sipp can also borrow up to 50 per cent of its net value in order to invest further, most commonly when the investor is purchasing a commercial property as this gives a lender some security for their loan.

      This guide will explore recent rule changes for Sipps, detail what advisers need to consider when contemplating a transfer to this vehicle and explain some of the regulator’s concerns about this product.

      Contributors of content to this guide are Charlene Edwards, technical services consultant at AJ Bell; Paul Evans, pensions technical manager of Suffolk Life; Chris Marshall, senior technical specialist at Hornbuckle and Matthew Rankine, director of sales and marketing at Liberty Sipp.

      In this guide

      Articles
      CPD Questions
      To reveal the CPD questions which accompany this guide, please sign in and read all of the articles below.