Change to sipp borrowing could bar small businesses

Under current regulations, Sipps are allowed to borrow 75% loan to value in order to purchase commercial property, which effectively allows members to borrow three times the amount in their pension fund. But after A-Day, the maximum amount a Sipp or Ssas can borrow will be just 50% of the scheme assets. Hornbuckle Mitchell believe the government made the changes to the borrowing rules to stop Sipp or Ssas owners with fairly moderate funds being able to “gear up” their fund to buy residential property at the lower end of the scale, creating a possible knock-on effect for first time buyers...