Charles Thomas investors can use pension funds to invest within our hotel resorts using a Self Invested Personal Pension (SIPP).
A Self Invested Personal Pension, known as a SIPP, is a personal pension whereby you as the owner of that SIPP can choose where it is invested. Traditionally, pension funds are used to buy stocks and shares, which can be volatile markets. With a SIPP you can invest in hotel resorts which are government backed schemes.
Volatility in conventional investment mediums, such as stock market equities and UK commercial property has caused many people to question the way they view their investments and how hard-working and versatile those assets really are.
Even people who once regarded their own residential home as their ‘pension’ are having to rethink their future financial viability and search further afield for alternatives, whilst ‘Buy to Let’ investors are seeking greater yields and capital appreciation in excess of what is achievable in the UK.
Traditionally, pensions in the UK are managed by a pension fund manager who typically invests in a mix of shares, fixed interest, UK commercial property and cash assets. Nevertheless, poor performance and negative returns over recent past years has encouraged many individuals to actively seek alternative investment strategies for their pension funds, in order to achieve capital growth. A SIPP provides a solution to widen investment scope for the discerning investor.
Many types of pension can be transferred into a SIPP, for instance many people have several deferred (frozen) pensions from previous employment or businesses and/or personal pensions that they can transfer. This is a complex area and it does need professional advice.
We have teamed up with a carefully selected range of UK Wealth Management organisations which specialise in pensions and the SIPP market.
How to invest with a SIPP
After investors have reserved their chosen unit with a £1,000 reservation fee, the appointed adviser will carry out a review, which is completely free of charge, to assess whether their existing pension plans may be transferred into a SIPP, to set up a new plan, or to review existing arrangements. If the adviser finds that the investor’s pension is not suitable for this investment the £1,000 reservation fee will be fully refunded.
It is also possible within HMRC rules to increase the amount of funds available in a SIPP by allowing the scheme trustees to borrow up to a further 50% of fund value. For example, if a SIPP has net assets of £200,000, it can borrow a further £100,000, making available £300,000 to invest.
An investor using a SIPP can also make contributions which qualify for tax relief. Please note that tax treatments depend on individual circumstances and current tax legislation and may be subject to future change.
For further details, please contact us and we will be happy to introduce you to an experienced pension specialist.
Charles Thomas Property do not provide any advice on SIPPs direct. We will introduce all interested clients to an authorised FSA firm for this purpose.
