What is a SIPP?
A SIPP is a self-invested personal pension, which allows individuals to manage their own pension fund. The purpose of a SIPP, as with any pension, is to provide a tax efficient vehicle to build sufficient funds to secure a retirement income.

There are many reasons why commercial property through SIPPs can be an attractive investment, and Validus’ partner SIPPs advisors can assist in all areas of SIPPs investment.

Investing in commercial property using a SIPP
A SIPP can directly purchase overseas commercial property, and can borrow up to 50% of its value to increase its purchasing power. In fact, property is the only SIPP investment which is allowed to be geared. Furthermore, rental income can be used to pay off the loan to the SIPP, and any rental income accrues to the SIPP free of UK taxation.

Contributions to a SIPP can be made up of new pension contributions from salary or savings or from transfers from existing pension schemes. Tax relief on pension funds means the effective cost of the property purchase is reduced by up to 40%. Furthermore, when the SIPP sells the property there is no UK capital gains tax.

Validus’ partner SIPPs advisor has completed geared SIPPs purchases of overseas commercial property. Our SIPPs advisers are happy to liaise with your current bankers in what can be a new area of them.

Our SIPP specialists are qualified independent financial advisers and tax specialists. They all hold the Financial Planning Certificate and have higher qualifications in taxation, trusts, retirement planning and/or investment planning.

For further information about investing with Validus, call us on
020 7517 0580, email ask@validus-invest.com or register here.

view disclaimerPlease note: As with all investment property purchases, you are advised to take proper financial and legal advice at all stages. Investment values can decrease as well as increase. The content of this website is for informational purposes only, and readers are advised to speak to qualified legal experts and financial planners before taking any action. The information, tables, projections, and estimations provided by Validus are for indication only and do not represent factual information unless otherwise stated. The information is supplied without any guarantees whatsoever.