Can I take cash from a SIPP to make a loan to an employee, relative or friend to buy a residential property and what should the terms of such a loan include?

James Hay: "A SIPP cannot lend to a SIPP member or anyone connected to the member e.g. relative, co-director or co-partner. However, pensions legislation does not prohibit a loan to an unconnected employee or to a friend nor does the legislation specify the use of the loan. Having said that if a loan was made to a friend to purchase a residential property the use of that property by the member could result in sanctions by HMRC. "It should also be noted that some SIPP providers do not permit loans under any circumstances." Andy Leggett, Suffolk Life: "SIPPs may make loans to third part...