| Self
Invested Personal Pension scheme (SIPPs):
- can buy Property now: in the UK
and Abroad (Please note that it is not applicable
to residential real estate, but only to holiday homes.)
- accrue Income Tax Relief up to 40% when you invest
in a SIPP property pension
- pay no Income Tax on rental
income
- do not pay UK Capital Gains Tax when they
sell property
- gain tax relief on property you already
own if you move it to your SIPP
- never have to buy
an annuity; you choose how much pension you have
- pensions need not die when you do;
your children can inherit your pension
Many U.K. residents dream of a "Place in the
Sun" but are limited to liquid funds and therefore
are only able to realise their dreams when their pension
funds mature.
A large number will now be able to realise their dream
allowing a young family to enjoy this lifestyle immediately
using their pension fund. Indeed, using a SIPP they
may be able to reduce their purchase costs by up to
40%.
SIPPs are available to the self-employed, partnerships
and employ¬ees who are not currently in company
schemes,
The SIPP is administered by a regulated financial institution.
Property purchased using a SIPP is registered in the
name of the owner's Pension Fund Trust, exclusively
for that individual, ensuring the property is legally
managed within the parameters of the pension scheme
and safeguards the property.
The major advantage is the
Tax relief afforded by the Inland Revenue. The Inland
Revenue contributes
an additional amount of up to 40% into the SIPP
fund increasing the purchasing power for the acquisition.
The Benefits
This means that higher rate tax payers will only have
to fund 40% of the purchase price, as the remainder
will be topped up by the Government through tax relief,
and via the ability to borrow an additional 50% of
that fund. Any rental income derived from the property
is added to the pension plan and allowed to grow tax-free.
Mortgage repayments can be adjust¬ed as pension
contributions and therefore out of gross income, reducing
the monthly commitment
SIPPs in Cyprus
Some countries do not recognise trusts, which is effectively
what a SIPP is, Cyprus however, has legislation in
place, which closely mirrors that of the UK, allowing
individuals the opportunity to purchase Cyprus property
via a SIPP.
Click here for the
most frequently asked questions on SIPPs.
Click
here for more information on Self Invested Personal
Pensions
Please click below for information on:
Although every care has been taken to ensure the accuracy
of this information, Aphrodite Property Sales can take
no responsibility for actions taken based on the content
of this page.
E&OE
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