SIPP Property Investment – Guide To Self Invested Personal Plans
Jun - 15 | 
11 comments. | 
Property Investment Guide
Initially the move of property investment money into SIPP’s was slow, but it has gathered pace and is now a very popular option amongst savvy investors looking for tax advantages.
A Self-Invested Personal Pension (SIPP) is the name given the type of UK government approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of HM Revenue & Customs (HMRC) approved investments.
SIPPs are a type of Personal Pension Plan. Another subset of this type of pension is the Stakeholder Pension Plan. SIPPs, in common with personal pension schemes, are tax “wrappers”, allowing tax rebates on contributions in exchange for limits on accessibility. The HMRC rules allow for a greater range of investments to be held than Personal Pension Plans, notably equities and property. Rules for contributions, benefit withdrawal etc are the same as for other personal pension schemes.
Rental income from properties can be directed back into the SIPP and not be liable for tax and capital tax gains from selling property is also not subject to tax provided the fund are kept in the Self Invested Personal Pension.
The following are the most popular ways to invest in property through your SIPP:
Commercial Property
Real Estate Investment Trust (REIT)
Land
This list does not include all investment options, but covers the main property investment opportunities.
Typical investments would include:
Shopping Malls, offices, factories and shops
Portfolio of properties, without being a landlord
Land plots on large holiday resorts overseas
UK agricultural land, forestry and green investments
Searching online for a SIPP property investment is the easiest way to start your search. There are many companies with SIPP products suitable for your self invested personal pension. The internet allows you to find the best investments as well as SIPP providers.
Nice post. Just putting it out there, if you ever are in need of a yacht shipper, look up Yacht Exports. They do a standup job.
There are great tax advantages of buying a property overseas with a SIPP. The only down side we can see is that you will not be able to use it as a holiday home as you are not allowed personal use. Other than this there is lots of great advantages especially as many of the alternative pension offerings seem to be under performing.
SIPPS are a great way to invest. Along with all the tax benefits it gives you a lot more control over how your pension is invested. SIPP’s are not without risk though of course so you need to make sure you do lots of due diligence before you invest in a property. Even the the development has passes as SIPP compliant it doesn’t mean its a good investment.
Knowing what you can afford and which neighbourhood you want to live in, narrows down the search. Buyers should remember that location is still very important when buying a house. A safe neighbourhood with shopping facilities close by is a big advantage. If you plan to rent out the property, these could add to a higher rental income. Buying in the right neighbourhood will also add potential to sell your house at a good price in the future.
Property investment was always popular. The big question is what better: invest directly or with securities help.
This is very useful information thanks for sharing.
It is now a real solution for cost effective pension planning. They offer the widest possible choice of investments for individual pension plans, allowing holders to pick funds from across the world wide market. Thanks for the info!
I am always looking for new opportunities and good property investment advice. Great and helpful site!
We have found a number of clients are now starting to buy using their SIPP. There are some great tax benefits, but clients need to be aware they may not benefit from things like “free usage” of their holiday home for example.
SIPP is without doubt the way forward for property sales in the UK
I’ve been interested for some time in purchasing investment property overseas. Thanks for the info. Very interesting.