A SIPP is a Self-Invested Personal Pension for which UK residents, investing for retirement, decides what their pension fund is invested in. Traditionally pensions are managed by a pension fund manager who will decide where to invest the client’s funds. Investing via a SIPP can give the investor the flexibility to manage their own fund by choosing their investments.
The SIPP provides a wrapper and enables the holder to have a number of different investments to take as pension benefits when they retire. As with any pension fund, the investor cannot take money from the fund until age 55.
There are several SIPP approved overseas property resorts, allowing property investors to use their personal pensions to invest in an overseas property.
What type of investments can be included in a SIPP?
A variety of investments can be held within a SIPP, for example, commercial property, Government securities, stocks and shares and unit trusts.
Which overseas properties are considered suitable for SIPP investment?
Typically they are part of a hotel resort and therefore the property investment is classified as a commercial purchase under HMRC Guidelines.
Are there any exclusions when purchasing via a SIPP?
The property investor is not able to utilise the property for personal gain and is therefore not entitled to the 30 days free usage per year.
Where can I get advice on a SIPP?
Advice on a SIPP must be sought from a pension specialist working for a firm authorised and regulated by the Financial Services Authority.
For more information about SIPP compliant properties, contact International Luxury Real Estate.
