Taxable property.

Apart from some very specific exceptions, UK pension schemes are not permitted to invest in taxable property, directly or indirectly.

Taxable property consists of:

• Residential property, and
• Tangible moveable assets (e.g. art, fine wines, cars, office equipment, etc.)

Unquoted equities may be an indirect investment in taxable property. This is not allowed. If the self invested pension invests in a company that owns taxable property then additional tax charges associated with indirect ownership of taxable property may apply.

The taxable property rules may also capture taxable property held by entities in which the unquoted company invests.

If taxable property is involved, the investment becomes an unauthorised payment and penal tax charges will apply on both the member and the Administrator. These charges are applied to the initial investment, income received and on any gain made on disposal.

We will not permit an unquoted investment to be held where there is a risk that these tax charges may be payable.

However, taxable property can be acquired without incurring a tax charge if the investment is a genuinely diverse commercial vehicle.