Dentons Thoughts.

Our Thoughts express an opinion as at the date they are written but statements and views may now be different, for example, due to pension legislation changes. Please contact us if you need any clarification.

SIPP vs SSAS comparison

Posted on 25/01/2019 by Stephen McPhillips | with 0 comments

Since the mid-1970s and the early 1990s respectively, SSASs and SIPPs have been valuable tools in the adviser’s toolbox for entrepreneurial and sophisticated clients.    

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A potential solution to avoiding the delay in HMRC registering a new SSAS

Posted on 07/12/2018 by Derrick Fowler | with 0 comments

Advisers must plan well in advance where their clients intend to establish a new Small Self-Administered Scheme (SSAS).  HMRC’s pension schemes newsletter 101, issued in July, confirmed that they would not be hurried in the scheme registration process and that when an online submission for a scheme’s registration has been made, no appeal can be made in respect of any delay until six month’s from the date of the submission.

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SSAS scheme registration timescales

Posted on 14/11/2018 by Ian Stewart | with 0 comments

​HMRC’s stance not to register schemes with dormant employers has been topical of late but in fact, HMRC have always had the power to request information and documents to enable them to consider fully new scheme registrations under powers contained in Section 153A of the Finance Act 2004.

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SIPP transfer considerations

Posted on 01/11/2018 by Derrick Fowler | with 0 comments

A key aspect of the role of a financial adviser is to research the marketplace and recommend and review the most appropriate products and services available for their clients – this is no easy task in an ever changing environment. Over recent years, one area that has seen more changes than most is the full self invested personal pension (SIPP) market. As a result of greater regulatory supervision and increased capital adequacy requirements, there has been considerable consolidation in the SIPP market triggering SIPP providers to make changes to their products and services – but these may not necessarily be for the better. 

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Pensions Tax relief

Posted on 25/10/2018 by David Fox | with 0 comments

A paper from the Centre for Policy Studies is calling for pension tax relief to be overhauled. While we agree 'more needs to be done' our views differ from the think tank. We will wait to see what the Autumn budget may bring.

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Intellectual Property

Posted on 29/08/2018 by Martin Tilley | with 0 comments

Amongst the more unusual asset classes you may find within registered pension schemes, is intellectual property. Whilst offering the potential for regular income and capital growth, there are many hazards, which need to be acknowledged and navigated. 

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Case study: When the bank says no a SSAS could help

Posted on 22/08/2018 by Ian Stewart | with 0 comments

A recent case has highlighted the advantages that creative use of a Small Self-Administered Scheme can offer.   

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Case study: Salary sacrifice

Posted on 15/08/2018 by Martin Tilley | with 0 comments

Salary sacrifice or the sacrifice of earned bonus is probably the most tax-efficient way of getting money into a pension plan especially if the employer is prepared to augment the bonus given up by the national insurance contribution that would have been payable on it. 

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The carry forward conundrum

Posted on 01/08/2018 by Martin Tilley | with 0 comments

One of the most common queries from advisers recently has been the use of carry forward of unused pension contribution allowances. Some advisers believe that the Annual Allowance (AA) may be fair game for the Chancellor soon, as one of the least painful and least complex reductions in cost to the Treasury. Therefore, the need to contribute whilst you can and maximise carry forward comes to the fore. 

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What constitutes taxable property?

Posted on 25/07/2018 by Martin Tilley | with 0 comments

As a SIPP provider, we are often asked to comment on the acceptability of an asset. Despite the uncertainty surrounding SIPP due diligence, one point is not in dispute and that is the willingness to avoid taxable property. 

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SSAS - an alternative lender

Posted on 17/07/2018 by Ian Stewart | with 1 comments

Although as far as economic cycles go we have seen far worse, advisers looking for alternative sources of finance for their corporate clients often approach us.  The ability to borrow from, and therefore repay interest to a connected party rather than into the coffers of a large bank is appealing.

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SIPP providers' asset acceptance procedures - Commercial land

Posted on 10/07/2018 by Martin Tilley | with 0 comments

Martin Tilley, Director of Technical Services, looks at where proposals to add commercial land to a SIPP are more likely to be accepted.

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Martin Tilley: Treading the fine line of SIPP due diligence

Posted on 05/07/2018 by Martin Tilley | with 0 comments

Recent trade press has reported widely on the issue of the Financial Services Compensation Scheme declaring three, now defunct SIPP operators, as in default based on a failure to carry out any due diligence on underlying investments, which subsequently failed. So are SIPPs off the hook?      

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Mixed-use Property purchase in a SIPP

Posted on 29/06/2018 by Derrick Fowler | with 1 comments

We will walk through a scenario where a SIPP is used to buy the client's shop premises with a residential flat above. 

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Changes to self invested pensions in the last 30 years'

Posted on 23/05/2018 by Martin Tilley | with 0 comments

With over 30 years' experience at Dentons, Martin Tilley reviews the changes and growth in the self-invested pension market.

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SSAS releases capital for company growth

Posted on 07/02/2018 by Ian Stewart | with 0 comments

George and Dennis Gibley have a problem and have approached their financial adviser. The brothers' company has turned in a record year and profits will exceed £150,000 resulting in a corporation tax bill of around £28,500. The brothes know that three months into next year, they will be investing in new plant and machinery necessary to keep them at the top of their market and likely costs will be at least £150,000, but ideally more.

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SSAS Legal Entity Identifiers - Dentons' registration service

Posted on 04/12/2017 by David Fox | with 0 comments

Small Self-Administered Schemes (SSASs) trading or wishing to trade in equities and bonds, ETFs, derivatives and certain debt related instruments (reportable financial instruments) will now have to obtain a Legal Entity Identifier (LEI) before trades can take place. 

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Why SIPP property purchase needs careful consideration

Posted on 04/10/2017 by Derrick Fowler | with 0 comments

Changes in the SIPP market and new rules around annual allowance and tapering mean property purchase through a SIPP is no longer as simple as it was.

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Retirement Outcomes Review: No time to be sitting on the sidelines

Posted on 27/07/2017 by David Fox | with 0 comments

We urge advisers to participate in the FCA's Retirement Outcomes Review following the recent Interim Report. The FCA has made some interesting observations and suggestions in its report, some of which were expected. The final report is due in Q2 2018 following a consultation that ends on 15 September 2017, and we would urge everyone to participate in this. Don’t just stand on the side-lines! The FCA genuinely wants to make the industry, and particularly income drawdown, better for all concerned.

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Spread the word through social media

Posted on 18/06/2017 by Helen Webb | with 0 comments

As self invested specialists we are no strangers to the more adventurous investment proposals as indeed this is precisely what both SIPP and SSAS vehicles were designed for. But as has been demonstrated by the need for a tough crackdown by the Financial Conduct Authority on SIPP asset acceptance, there have been and continue to be promoters of opportunistic investments which for want of a more apt description, shall we say, are of dubious character. 

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Ownership of non-standard assets

Posted on 07/06/2017 by Martin Tilley | with 0 comments

SIPPs holding assets deemed as ‘non-standard’ now have to be recorded carefully by the SIPP operator and these impact on the required level of a SIPP operator's capital adequacy provision. As a result a number of SIPP providers are either stopping or restricting the level of non-standard assets they will accept.

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What constitutes tangible moveable property in a SIPP or SSAS?

Posted on 06/04/2017 by Martin Tilley | with 0 comments

Defining what tangible movable property is might be more complex than you think and if owned by the pension scheme would lead to tax charges. We explore what constitutes tangible moveable property and assets that potentially fall into this category; the most notable being any interest in residential property.

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'Baby boomers' in need of retirement planning

Posted on 30/03/2017 by David Fox | with 0 comments

'Baby boomers' have now started to, and will, for the next twenty or so years reach the end of their working lives. Britain will have a larger proportion of its population at, or in retirement, than ever before and as this group of individuals reaches retirement, crucial life changing decisions need to be made. However the grasp of an individual’s financial affairs, and in particular pensions and planning for retirement seems to have remained firmly rooted in the past.

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TOGC clarification

Posted on 16/02/2017 by Derrick Fowler | with 0 comments

With the number of commercial properties being purchased through SIPPs continuing at a high level, it is useful to set out the treatment of Transfers of Going Concern (TOGC) which might impact some potential property investment cases going forward. 

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