For UK unquoted equities, it is important to establish whether the proposed share purchase is allowable as a pension scheme investment.

We will assess any proposals in detail before allowing such investments. If you, or your client, are considering this type of investment, please read,  complete and return the following form(s):

For investment in an unconnected unquoted trading company we normally require at least 3 years' accounts demonstrating a successful trading record. No more than 50% of the net value of the SIPP or SSAS can be invested in shares in, and/or for loans to, unquoted UK limited companies.

There are a number of areas where investment in unquoted companies could involve the pension scheme member(s), sponsoring employer and/or the pension fund in substantial tax charges. For example, in certain circumstances, unquoted equities may be an indirect investment in taxable property, which is not allowed.

Although we make every effort to meet client objectives within their self invested pension investment portfolio, we will not allow any investment to be held that could potentially give rise to tax charges.

Please Note:  Although the AIM market (Alternative Investment Market) is not regarded as a recognised stock exchange, we treat AIM listed shares as a standard asset and therefore there is no restriction on the amount that can be held. However, before we will accept AIM shares within our schemes, they must be referred to our Technical Manager for approval.

You can read an article from Stephen McPhillips, Dentons' Technical Sales Director, on 'Navigating the world of unquoted shares'
 

Ready to find out more?
Speak to an expert today.

Whatever your retirement needs, one of our experts will be happy to discuss how we can help you achieve your goals.