Apart from some very specific exceptions, SIPP and SSAS schemes are not permitted to invest in taxable property, directly or indirectly.
There are two categories of taxable property, residential and taxable moveable property.
Direct investment by a pension scheme in taxable property is an unauthorised payment and could give rise to tax charges on the member(s), the pension scheme (via the Scheme Administrator), and any income (or, if greater, deemed income of 10% of the value of the pension scheme’s interest in the taxable property) and any capital gains in relation to the investment.
By investing in a vehicle that holds such property, directly or indirectly, and where that vehicle is not a genuinely diverse commercial vehicle, it could give rise to similar tax charges, although any item of tangible moveable property that is worth no more than £6,000 and is held solely for the purposes of the administration or management of the vehicle’s business is excluded. Investment grade gold bullion is also excluded.
We do not allow investment in taxable property.
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