Funding your Investment with a SIPP

You can now use your pension funds to invest in our developers property using a SIPP. (excluding Brazil)

A Self Invested Personal Pension, known as a SIPP, is a personal pension for which the person investing for retirement decides what their pension fund is invested in. Traditionally pensions are managed by a pension fund manager who may invest in volatile stocks and shares or boring old cash and the investor has no control or influence on this decision.

Any type of pension can be transferred into a SIPP, for instance many people have several 'frozen' pensions from previous employment or businesses and/or personal pensions that they can transfer. This is a complex area and it does need professional advice. Our developers have teamed up with one of the UK’s leading independent wealth management companies which specialises in pensions and investments. They will carry out an initial review completely free of charge for potential investors to assess whether their existing pension plans may be transferred into a SIPP.

If an investor already has a SIPP, or once the SIPP has been set up, the investor selects the property they wish the SIPP Trustees to invest in. It is also possible to increase the amount of funds available in a SIPP by borrowing up to a further 50% of the value of the SIPP. For example if a SIPP has funds of £200,000, it can borrow another £100,000 making available £300,000 to invest.

An investor using a SIPP can make further contributions ongoing into their SIPP and is entitled tax relief at his highest rate which means that if his highest rate is 40% tax paid on £100,000 it would only cost him £60,000.

For further details of how to invest in one of our developers properties using a SIPP and the fees associated with this please contact us and we will be happy to introduce you to an independent pension specialist.

There may be an initial set up fee and ongoing annual charges associated with the management of the SIPP.

Investment Property Gazette does not give financial advice. While our developers believe that the properties represent excellent investments, each investor must undertake their own research to satisfy themselves before proceeding.