XPS Self Invested Pensions is waiving its property purchase fee for ‘connected parties property purchases’ to help savers deal with the impact of the pandemic.
The offer will run until the end of September and only applies to advised clients who are buying a commercial property or eligible land from their company, either themselves or someone connected to them.
XPS said this will create a saving of between £890-965, plus VAT, but does not apply to third-party purchases or in-specie transfers and the property purchase must complete by April 1, 2022.
The firm said it decided to waive fees in order to help its advised clients generate funds back into their business, improve their cash flow and assist in their recovery from the impacts of the pandemic.
Purchasing commercial property via self-invested personal pensions or small self-administered schemes can deliver tax benefits as well as generating funding for businesses.
Andy Bowsher, director of Sipps at XPS, said: “The financial and commercial impacts of Covid-19 have been severe for many SME businesses. As the country emerges tentatively from lockdown and the various government supports are withdrawn, many businesses will be looking at opportunities to raise cash as they literally fight for survival.
“Selling their commercial premises to their pension scheme can provide a vital bridge, while also delivering an excellent and tax efficient investment to their pension. We want to support these clients by waiving our property purchase fee, which can save them in the region of £1000.”
Jeff Steedman, head of business development for XPS Self Invested Pensions, added hat financial advisers “are playing a vital role” in supporting their small business clients with financial decisions during these tough times.
Steedman said: “Tens of thousands of business owners have sold their premises to their pension schemes over the years. The rental income, along with capital growth in the value of the property, has provided excellent returns for the client’s Sipp/Ssas.
“Exploring all options with clients, including potentially selling their premises to their pension scheme, is something all advisers with SME clients should consider.
“Advisers should make their clients aware of both the pros and cons of this type of property purchase and shouldn’t hesitate to speak with their XPS Business Development Manager should they need further information.”
Xafinity Sipp and Ssas, part of the XPS Pensions Group, rebranded to XPS Self Invested Pensions back in March.
XPS Pensions Group was created three years ago, after Xafinity acquired the actuarial and administration divisions of Punter Southall, which consequently saw the business become XPS.
amy.austin@ft.com
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