Allowable in a Sipp?

Allowable in a Sipp?

Author
Discussion

isleofthorns

Original Poster:

475 posts

170 months

Sunday 26th October 2014
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Can my sipp lend to:
1) a ltd company 50% owned by my partner's sister? (other 50% is totally unconnected). Loan would be secured with a debenture.
2) agricultural / equine property comprising land, stables, sand school.
Thanks

PurpleMoonlight

22,362 posts

157 months

Monday 27th October 2014
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The to the Ltd is permitted but many SIPP providers still wont do it.

I don't understand the second question, how do you make a loan to land? If you mean buy land, then yes that should be fine as long as it's proper agricultural land and not a large garden.

isleofthorns

Original Poster:

475 posts

170 months

Monday 27th October 2014
quotequote all
Thanks purple....
I chatted to a sipp provider today and was shocked at the costs! Especially as they were insisting on a third party property managing agent on top of their fees.

Ginge R

4,761 posts

219 months

Monday 27th October 2014
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SIPP costs and charges..? Don't get me started!

Having said that, there are lots of SIPP providers out there who will want your business - who did you go to?

isleofthorns

Original Poster:

475 posts

170 months

Monday 27th October 2014
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I was recommended to a provider called Sipp choice ltd... Very helpful on the phone.

PurpleMoonlight

22,362 posts

157 months

Tuesday 28th October 2014
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isleofthorns said:
Thanks purple....
I chatted to a sipp provider today and was shocked at the costs! Especially as they were insisting on a third party property managing agent on top of their fees.
They don't all do that. Shop around a bit.

Ginge R

4,761 posts

219 months

Tuesday 28th October 2014
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IoT,

If it's the one I'm looking at, that's expensive. Those fixed costs are a hurdle that your 'pot' has to clear before you can benefit from any investment choice returns. Against a modest pot, the hurdle could well be crippling. Look on it like treading water with weights around your ankles.

Purple M has it right, take a look around. smile

isleofthorns

Original Poster:

475 posts

170 months

Wednesday 29th October 2014
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any recommendations?
looking for a sip that will hold an agricultural property, without heavy management fees, annual fees etc

Ginge R

4,761 posts

219 months

Wednesday 29th October 2014
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Because what you're suggesting comes with a far wider range of risks and consequences, I am being doubly sure that you don't assume I'm making a recommendation or commenting on the suitability of your specific course of action or the provider. But by way of information only, take a look at Boolers, Dentons, Mattioli Woods or Rowanmoor. Other providers of course, are available. Generally, the decision about how HMRC guidance is interpreted is left to the product provider.

The vast majority of pension providers are responsible and diligent but some have been rumoured to allow less than watertight transactions through, in an attempt to grow business or circumnavigate legislative intent. I'm sure that this isn't the case here but please take time to take some objective advice that you can trust, even if only to give you peace of mind that what you are trying to achieve can't be achieved elsewhere or more suitably.


ellroy

7,030 posts

225 months

Wednesday 29th October 2014
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Hornbuckle Mitchell tend to be very felxible as regards what can go into their SIPP, not sure what their charges are like these days mind.

If price is an issue Suffolk life, I understand, are on the less costly side.

PurpleMoonlight

22,362 posts

157 months

Wednesday 29th October 2014
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isleofthorns said:
any recommendations?
looking for a sip that will hold an agricultural property, without heavy management fees, annual fees etc
Your problem is that most of the 'full SIPP' providers will only accept business via a regulated individual/firm. They won't establish a new SIPP direct with the public.

You could try Hargreaves Lansdown or the full product with SIPPdeal.

isleofthorns

Original Poster:

475 posts

170 months

Wednesday 29th October 2014
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thanks purple...

do you mean, I'd need to do the transaction through an IFA?

PurpleMoonlight

22,362 posts

157 months

Wednesday 29th October 2014
quotequote all
isleofthorns said:
thanks purple...

do you mean, I'd need to do the transaction through an IFA?
You are not legally obliged to but not doing so will restrict your SIPP provider options.

Ginge R

4,761 posts

219 months

Thursday 30th October 2014
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Hornbuckle Mitchell got into a scrap a while back about some, erm, mad investments which an IFA placed into one of it's SIPPs. Service pretty bad too. New rules will see about 10% of the smaller SIPP providers dissapear so they ate going to be far more risk aware/risk averse.

That means that they are more inclined to accept new business which will have had the risk ironed out (hopefully) through diligent and appropriate advice. Having said that, some will accept business that walks in directly, but they don't like handholding or creching. They want to transact business with the groundwork already done, as much as anything, to save on cost as well as regulatory and compliancy risk.

Ginge R

4,761 posts

219 months

Friday 31st October 2014
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Further to my last, those smaller SIPP providers fight back.

http://www.ftadviser.com/2014/10/27/pensions/sipps...