SIPPS 2
Assetpool is offering a real solution for those investors that wish to use their pension fund to invest in off-plan residential overseas property
Individuals can invest in off-plan residential overseas property from today (prior to A-Day). For a higher rate taxpayer, this can be the equivalent of a 40% contribution towards the price of the property in Benalmadena, Spain.
Assetpool, set up by two of the original founders of the Millfield Group, is offering individuals a real solution to purchasing off-plan residential property through their pension fund prior to A-Day.
David Wilkinson from Assetpool said: “There are a lot of companies who have been quite vocal about offering the ability to purchase new overseas property through a SIPP before A-Day, but very few have actually tried and tested the process. We have already done our homework and have partnerships with specialist pension fund administration, tax, legal and property advisers who can now help our clients purchase property to be held within a SIPP, smoothly and efficiently.”
In anticipation of A-day, (when, on 6 April 2006, the new rules for pension simplification come into force) Assetpool, has today announced the launch of a new and unique process called Realisor. The scheme brings together carefully selected experts to provide assistance to individuals wishing to take advantage of the opportunity to invest some or all of their pension funds into home or overseas property within a SIPP (Self Invested Personal Pension). However, until 6 April next year the pensions legislation states that investors can only hold off-plan overseas property within their SIPP i.e. property that is still in the design and construction stage and does not have a habitation certificate.
David Wilkinson from Assetpool said: “We’ve spent a considerable amount of time resolving and ironing out potential issues so we can truly offer individuals the opportunity to invest in overseas residential property via a SIPP today with no delay. By using companies who have not yet fully grasped the complexities of the investment process, consumers may find themselves paying additional and unnecessary costs. For example it’s not as simple as just taking out a SIPP. If the financial adviser does not set up the correct structure within that SIPP, an investor holding off-plan property in Spain may be subjected to a substantial tax bill when they come to sell, negating all the benefits of the SIPP in the first place.”
Other Features
• Realisor is a comprehensive step by step process which helps individuals ascertain the value of the pension fund, determine suitability of transfer to a SIPP, engage specialist trustees, select overseas property, and consults tax and legal advisers.
• From April 6 2006, Realisor will facilitate borrowing within the SIPP when purchasing a residential property.
• There is normally no minimum lump or regular contribution within a SIPP; however the ongoing costs charged by the SIPP provider may prohibit small sums of money being invested.
• SIPP providers will allow access to information via telephone and post and Internet.
• As with other pension investments, the Government provides tax relief of 22% basic and a further 18% (40% in total) for higher rate taxpayers.
• SIPPs will allow a full range of discretionary investments to be held in addition to property.
• Ability to take 25% of the value of the SIPP as a tax-free lump sum at retirement.
• Contributions can be made by cheque, Direct Debit or electronic transfer.
Research shows that as a nation we own over one million second homes and 550,000 of these are overseas. Spain is still Britain’s number one choice: over the past five years the mass migration of Brits heading to the Costas has risen by an unprecedented 460%. According to RICS (the Royal Institute of Chartered Surveyors) although predicted to slow down rapidly in 2004, the Spanish property market actually continued to power along and prices rose by 17% across the country last year.
For your free guide on using a pension to buy overseas property, contact the company via e-mail: info@assetpool.co.uk
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