Question: We sell overseas investment properties and have had conflicting views from different developers regarding the current position for buying such properties via a SIPP. I appreciate that, in any event, no personal use would be allowable, but what, if any, are the restrictions on using a SIPP to buy investment properties outside the UK?
James Hay: "Pension tax legislation does not prevent Registered Pension Schemes from investing in property. Because most residential property is classed as taxable property investing directly or indirectly in such property via an investment-regulated pension scheme (e.g. SSAS or SIPP) gives rise to tax charges. These tax charges make such an investment less attractive for the scheme member and it is likely that most SIPPs will not offer this investment option." Andy Leggett, Suffolk Life: "One of the initial assessments that should be made with any SIPP property purchase is whether it wi...
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