Using SIPP to invest in private company

[ChasW]

Anyone know if it's possible to use funds in a SIPP to invest in an unquoted UK company? My current provider won't allow it but I think it's their own policy not necessarily a general rule.

[PurpleMoonlight]

Yes the legislation permits it, but SIPP providers are not keen.

[ChasW]

Thanks. I guess there's no commission in it for them unless they apply a transaction fee. I'll hunt around

[PurpleMoonlight]

No that's not why, most charge fees for their services.

It's because for pension purposes the assets of the Ltd are deemed owned by the shareholders and that can create adverse and hefty tax consequences for the SIPP.

[dodgydave]

I have unquoted companies in my SIPP, but very deal specific.

[ChasW]

dodgydave said:

I have unquoted companies in my SIPP, but very deal specific.

Who is your SIPP provider if you don't mind me asking?

[Jockman]

Not allowed with Suffolk Life.

[dodgydave]

Dentons pensions.

[JulianPH]

It is quite complex as there are many rules. James Hay have a good guide:

https://www.jameshay.co.uk/media/1837/unquoted-sha...

Most of the large 'proper' SIPP providers offer it though.