Warning on SIPP and SSAS property rules

clock

SIPP and SSAS clients may need to re-examine any loans secured against taxable property following a clamp-down by HMRC.

The change in tax rules means loans from pension funds secured against residential property will now be seen as an ‘unauthorised payment' and face a tax charge. Mary Stewart, marketing director of Hornbuckle Mitchell, says the change in rules is the next stage in HMRC's crackdown on residential property holdings within SIPP and SSAS. New HMRC regulations treat a scheme as having an interest in taxable property if it ‘holds the property or any estate, interest, right or power over the property'. Previously, the taxman did not consider property as security on a pension loan as ‘havin...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions campaigner and former WPC chair Frank Field dies aged 81

Pensions campaigner and former WPC chair Frank Field dies aged 81

Field was a former Work and Pensions Committee chair and a welfare champion

Professional Pensions
clock 24 April 2024 • 5 min read
Crucial advice issue: Death benefits detail advisers need to know

Crucial advice issue: Death benefits detail advisers need to know

Important differences from previous regime

Andrew Tully
clock 05 April 2024 • 4 min read
British Steel a stark reminder of obligations around client files

British Steel a stark reminder of obligations around client files

Lawyer Philippa Hann reflects on her work around the pensions case

Hope Coumbe
clock 27 March 2024 • 2 min read