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Self Invested Pension Schemes (SIPPs)

What Is A SIPP?

A SIPP is a Self Invested Personal Pension

Pensions are notoriously complex and for many, confusing, which means that many people, put off making decisions about their retirement. If you already have a pension, chances are you're not sure how much is in it, or how much income it will pay you on retirement.

With a traditional pension, you have no real involvement other than in making the contributions. However, with a SIPP, you manage your own pension, making the decisions as to when and where you invest.

Self-Invested Personal Pensions are a UK government approved personal pension scheme that allows you to invest in certain HM Revenue & Customs approved investments. You manage your own investments by making and switching them as you choose.

You know the value of your retirement funds at any moment and this puts the control of your retirement fund back into your hands.

Call 0845 095 6900 for SIPP-approved property investments

The SIPP-approved investments on this site have been approved by a regulated pension administrator. Take a look at some of our Investment Land and Property to see what's available.

Transfer Your Pension To A SIPP

If you're dissatisfied with the performance of your current pension, and like the idea of SIPP, you'll be pleased to know that most types of pension funds can be transferred into a SIPP. Here are some of the pensions that can be transferred:

	Final Salary Pension
	Personal and Stakeholder Pensions
	Protected Rights funds (also known as contracted out of SERPS funds),
	AVC's - Additional Voluntary Contributions
	Drawdown pension
	Retirement Annuity Contract

You can also make personal contributions on a regular or lump sum basis to fund the SIPP.

We have partnered with a number of the UK’s leading pension and investment professionals, who guide you through your options when transferring frozen pensions or funds from other personal pensions. It's crucial that you take the correct independent financial advice before transferring pensions funds.

When considering your pension arrangements you should compare the potential income and check whether benefits such as your tax free cash entitlement are comparable with those offered by your existing pension and make sure you are aware of any penalties you may be charged, or any bonuses or guarantees you may lose by transferring.

SIPPS and Property

You can now buy an overseas property using UK pension funds by purchasing via a SIPP.

You can invest in commercial property and other property that has been specifically approved for SIPP-investment. such as land, hotels and fractional ownership. You cannot use funds in a SIPP to purchase residential property such as buy to let.

Tax Advantages of SIPP's

Pensions such as a SIPP are the most tax efficient way of saving for retirement.

One of the key advantages is that you get tax relief on your contributions based upon the rate of income tax that you pay. Plus, you have no tax to pay on any dividends, income or capital gains earned on the investments in the SIPP.

For example, if you're a higher-rate taxpayer at 40%, and you invest £8,000 into a SIPP, the government would pay 20% tax relief into the fund ie £2,000 - giving you a gross amount in your SIPP of £10,000. In addition you could claim a further 20% ie £2,000 as tax relief via your tax return. So the £10,000 invested in your SIPP has cost you £6,000 net.

If you pay tax at 50% (income over £150,000pa) you would get tax relief at 50% on your pension contributions. Tax relief is currently on contributions up to a maximum of £50,000pa.

Another benefit of a SIPP, is that you can take a 25% tax free lump sum at retirement if you wish. This can be used for whatever you like eg pay off a mortgage, invest in a holiday home, or just treat yourself. However, you do need to bear in mind that this would potentially reduce your income during retirement.

In comparison, if you make investments outside of a SIPP or other pension, you will be investing money you have earned net of tax, and would have to pay further tax on income or capital gain.

For SIPP-Approved Property Investments
Call 0845 095 6900

SIPP Summary

	Control - you decide where your money is invested
	Diversification - invest in asset classes of your choice such as land, hotels, fractional ownership and gold.
	Tax efficient saving - tax relief at your income tax rate plus tax free lump sum at retirement.
	Consolidation - if you have several pension funds you can transfer them all into one place for easier management
	Want to invest and don't have the funds? - check all your pension options - you may have funds that you didn't know about which could be used to invest via a SIPP. (Call us for info on how to do this.)
	Improved Retirement Benefits - a SIPP may provide you with more income than your current pension (subject to review and advice by an Independent. Financial Advisor)
	Leverage - You can borrow up to 50% of the net value of a SIPP to increase the overall fund for property investment. EG a fund with a net value of £150,000 can borrow £75,000 (50%) to make a total fund of £225,000 to invest in property.

Call us NOW on 0845 095 6900 to learn more about our SIPP-Approved investments.

IMPORTANT NOTE: Fast-Track Property is not providing financial advice regulated by the Financial Services Authority. All information has been obtained solely from our own experience of purchasing property. It is provided as general information only and is not intended as investment advice. Before making any decisions based on the information provided, you should consult with either the specialist advisors we introduce to you, or take independent legal and financial advice. . The price and value of any property and income can decrease as well as increase, and the return on the Property may be less than that originally invested.