The Sipp Provide Group (Spg) has responded to Lord Oakeshott's claims last week that conusmers believed they would be able to put their own homes, buy-to-let and oversea properties into a Sipp without the checks and balances that might be necessay.
In a statement the Spg says: Barry Bolland, chairman of the Spg attended the reception last week. He spoke to Lord Oakeshott after he had given his speech to point out that the Spg has been making considerable efforts to try to put across the message that despite the banner headlines of Sipps being able to invest in the member’s own home and foreign property (and other more esoteric investments) from 6 April next year, this is unlikely to be as widespread as is being suggested.
The previous chairman of the Spg indicated earlier this year the suggestion that thousands of people are out there waiting to pile large sums of money into Sipps is fanciful to say the least. The report by the National Audit Office in March 2004 found a mere 747 people in the UK put more than 20% of their income into a pension.
It was also pointed out that the size of the UK property market is approximately £3 trillion and the size of all Sipp assets is about £25 billion. So, if 25% of all Sipp money went into the housing market it would represent only about 0.002% of that market.
Furthermore, even though the investment restrictions that currently apply to Sipps are to be removed with effect from 6 April 2006, any Sipp member considering investment in their own home or foreign residential property from that date will need to take the following into account:
Clearly, any Sipp member wanting to undertake such investments will need to take appropriate, good quality independent professional advice.IFAonline
Succeeding co-founder Simon Rogerson
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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