Personal loan against SIPP

[Wilmslowboy]

Mate (not a PH member)

Wants to borrow £200k against his SIPP (which is £1/2 million +)

Plans to pay the loan back in 2 years, but the worse case can pay back in 6 years when he hits 55 (25% tax-free sum out of the SIPP, plus some additional more)

Has life cover etc, happy to assign SIPP to the lender, pay interest as he goes along


Is this even viable and if so who should he approach?

[BeeBopp]

I’ve done a lot of lending in my time but I’ve never come across a loan secured against a pension. I’d not spend too much time looking into it

[wattsm666]

No chance of that

[foliedouce]

What’s the money for?

Does he have his own business?

Maybe ways of doing this, depending on the answers to these questions.

[Stay in Bed Instead]

If a SIPP acts as a guarantor for a loan effected by the member it will be deemed an unauthorised member payment and subject to tax charges totaling 55%.

[Wilmslowboy]

Sounds like a no goer

It was away round the fact the Sipp can not lend him money direct (connected person etc)

[anonymous-user]

What he needs is a SASS and a business that he can lend the money to. SIPPs are inflexible.

[The Moose]

I guess he’s heard you can do that in the US against your retirement savings but it’s not a good idea and you end up robbing from your future.

[Stay in Bed Instead]

soofsayer said:

What he needs is a SASS and a business that he can lend the money to. SIPPs are inflexible.

SSAS not SASS.

[Helicopter123]

Wilmslowboy said:

Mate (not a PH member)

Wants to borrow £200k against his SIPP (which is £1/2 million +)

Plans to pay the loan back in 2 years, but the worse case can pay back in 6 years when he hits 55 (25% tax-free sum out of the SIPP, plus some additional more)

Has life cover etc, happy to assign SIPP to the lender, pay interest as he goes along


Is this even viable and if so who should he approach?

Can't be done, sorry.

[anonymous-user]

Stay in Bed Instead said:

soofsayer said:

What he needs is a SASS and a business that he can lend the money to. SIPPs are inflexible.

SSAS not SASS.

Apologies for the typo.