The following Property guidance note provides comprehensive and up to date legal information covering:
This Practice Note set out some of the key issues to be considered when acting on the purchase of a property from a Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS).
Self-Invested Personal Pension (SIPPs) and Small Self-Administered Scheme (SSASs) are both examples of an investment-regulated pension scheme.
Investment-regulated pension schemes (IRPS(s)) are a particular category of registered pension scheme that is subject to additional controls on the asset classes that can be held as investments.
An IRPS could either be an occupational or a personal pension scheme, and the arrangements commonly referred to as SSASs and SIPPs (under which a member can have almost complete autonomy in determining the investments that are to be made) are the two categories of arrangement principally regarded as IRPSs. IRPSs were introduced as a separate category of registered pension scheme by the Finance Act 2004.
For more information, see Practice Note: Investment-regulated pension schemes (IRPS).
SIPPs and SSASs are tax-advantaged in terms of contributions and qualifying investments. However, with very few exceptions, a SIPP or a SSAS will suffer significant tax charges if it holds a direct or indirect interest in residential property (regardless of whether the property is to be occupied by the scheme member(s) or rented out to a third party (eg by way of buy-to-let)).
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