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FINANCE |
Taking control of your
retirement
Self-invested Personal Pensions
SIPP stands for ‘self-invested personal pension’ and, as the name suggests, a
SIPP is a type of DIY personal pension. It is a wrapper in which investors can hold a much
wider range of investments than in a standard personal or stakeholder pension plan. As
with all personal pensions there is no capital gains tax to pay on profits. SIPPs
are currently subject to the same rules as personal pensions. They have the same limits on
contributions, the same 25 per cent restriction on the tax-free lump sum on retirement and
the same requirement to buy an annuity by the time you reach age 75. The current
permitted range of investments for SIPPs include listed stocks and shares recognised by
the Inland Revenue, both UK and overseas, investment trusts, unit trusts, OEICs, gilts,
hedge funds, derivatives, options and even commercial property, provided the commercial
property is not owned by the member(s). When investing in commercial property the
SIPP is currently allowed to take a mortgage of up to 75 per cent of the property's value.
You could then lease the property to a business that you own (on commercial terms) or to a
third party. If you are a business owner, this can be tax-efficient, since the rent comes
out of the business's pre-tax income and comes into the SIPP as tax-free investment
income. A SIPP allows you to control your own retirement fund and you can freely
shop around for the annuity you want to buy when the time comes. There is the added
benefit of being able to sell shares outside a SIPP to realise capital gains to use the
annual exemption and then buying them back within a SIPP to collect the tax relief on the
way in. Please note you cannot sell the shares you own directly to the SIPP.
Rule changes. Moreover, under the proposed new rules that come into
force on 6 April 2006 (A-Day), there are a number of proposed changes which could make
SIPPs even more attractive to the right investor. These include the possibility to invest
in residential property and possibly enter into transactions with connected persons.
Levels and bases of, and reliefs from, taxation are subject to change. Because these
investments may go down in value as well as up, you may not get back the full amount
invested. The amount that can be contributed into pension schemes is subject to set
limits. For further advice on these or any other type of investments please contact
Pam Blyth at financial futures ifa Ltd on 01263 825037. financial futures ifa
limited is authorised and regulated by the Financial Services Authority. |
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The Little Theatre
'Lousy Chess Club'still meets in the HUB on Friday afternoons. We accept anyone, the
lousier the better! |
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YOU HELP THE POPPY LINE FIND THE DEARDS FAMILY? |
With the support of Sheringham Town Council,
the North Norfolk Railway Poppy Line has bought part of Ottendorf Green to extend the
“run-round” for engines and allow the operation of longer trains.
The work will involve the relocation of two benches, one dedicated to Hannah Deards and
one to Henry Deards. The railway management is keen to get in touch with the Deards family
and explain why the benches need to be moved, but director Barry Denton says he has been
unable to trace them. Can any reader help with an address or phone number for any relative
of Hannah or Henry? If you’ve got any information, please contact the editor or call
Sheringham Station on 01263 820 800.
The bench inscribed "Presented by Sheringham Townswomen's Guild - July 1992"
will also need to be relocated elsewhere on the Green. Mr Denton emphasizes that every
care will be taken to re-site the benches without damage. |
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