Can this be done with a SIPP

[onny]

A friend has significant amount in a SIPP. He company needs a cash injection and some plant and equipment as they have just won a big contract.

As an investment for his SIPP, can he lend money to his company and charge interest for the loan via a legal contract with fixed loan period and interest etc? Can he buy a couple of diggers and other equipment and lease it back to his company at market lease fee?

I know he can buy commercial building so in theory he can by a lockup and rent it back to his company. But can his SIPP act like a finance company and lend money?

[onny]

Thanks guys, that is very useful information.

Sorry for my stupidity but what is the difference between a SIPP and SSAS from a pension point of view. if My friend transfer his SIPP into a SSAS he sets up, is that any tax implications or financial penalties?