Genuinely diverse commercial vehicles.
These are indirect investments which will not be subject to tax charges when held as a scheme investment.
They can include:
- UK REITS (Real Estate Investment Trusts)
- Trading companies (see conditions below) and
- Other vehicles, such as a Special Purpose Vehicle, which are often established as Unit Trusts, OEICs (Open ended investment companies) or other pooled arrangements, and must meet certain qualifying criteria
There are four conditions that must be met to satisfy trading concerns:
- The vehicle's main activity is the carrying on of a trade, profession or vocation (in other words it is NOT an investment company)
- The pension scheme does not have control of the vehicle (either alone or with other connected persons)
- The pension scheme member or a person connected with a member must not be a controlling director (that is someone who owns or controls 20% or more of the share capital)
- The member or connected persons cannot use the property
For more information please contact us.