SIPP loans will only be acceptable if they are genuine investments of a pension scheme and are made on commercial terms.

Loans to individuals (including members), partnerships or trusts, or companies connected with members are not permitted. Loans can also not be made to collective investment schemes.

SIPP loans must be constructed as genuine investments.  We reserve the right to request the information that will allow us to consider and approve SIPP loans.‚Äč 

SIPP Loans to unconnected UK limited trading companies:


We will require a minimum of three years' positive trading accounts if the loan is not secured by a first charge on property of sufficient value.
 
  • Secured loans: We will consider up to 95% of the net market value of the SIPP at the point of advance/purchase provided it is secured by a first charge on property with a loan to value of no more than 70%. A minimum SIPP fund size of £60,000 is required.
  • Unsecured loans:
    • We will allow up to 25% of the net market value of the SIPP at the point of advance/purchase, with a maximum term of two years. 
    • The total amount held in unsecured loans and shares in unquoted UK limited trading companies, must not exceed 75% of the net market value of the SIPP fund with the remaining 25% of assets to be held in readily realisable investments, i.e could be traded/sold for a reasonable price within 30 days. If the investments are in the same company, the maximum is restricted to 50%.
    • A minimum SIPP fund size of £100,000 is required.
    • The normal maximum term of an unsecured loan is two years, but unsecured loans of up to three years may be considered
    • We require a cashflow modelling to show repayment terms for the loan.

For both secured and unsecured loans, a balance of at least £5,000 in the SIPP default bank account must be maintained after the loan has been made.

Each loan will be assessed and approved based on our requirements: please read our Guidance notes before completing and returning the Loan to unquoted UK limited trading company questionnaire.

SIPP Loans to unconnected UK limited non-trading companies:

 
  • Secured loans: We will consider up to 95% of the net market value of the SIPP at the point of advance/purchase provided it is secured by a first charge on property with a loan to value of no more than 70%.
  • Unsecured loans:
    • We will allow up to 25% of the net market value of the SIPP at the point of advance/purchase, with a maximum term of two years. 
    • The total amount held in unsecured loans and shares in unquoted UK limited trading companies, must not exceed 75% of the net market value of the SIPP fund with the remaining 25% of assets to be held in readily realisable investments, i.e could be traded/sold for a reasonable price within 30 days. If the investments are in the same company, the maximum is restricted to 50%.
    • A minimum SIPP fund size of £100,000 is required.
    • The normal maximum term of an unsecured loan is two years, but unsecured loans of up to three years may be considered.

For both secured and unsecured loans, a balance of at least £5,000 in the SIPP default bank account must be maintained after the loan has been made.

Each loan will be assessed and approved based on our requirements: please read our Guidance notes before completing and returning the Loan to unquoted UK limited non trading company questionnaire.

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