SIPP Property Investment

Initially the move of property investment money into SIPP’s was slow, but it has gathered pace and is now a very popular option amongst savvy investors looking for tax advantages.

A Self-Invested Personal Pension (SIPP) is the name given the type of UK government approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of HM Revenue & Customs (HMRC) approved investments.

SIPPs are a type of Personal Pension Plan. Another subset of this type of pension is the Stakeholder Pension Plan. SIPPs, in common with personal pension schemes, are tax “wrappers”, allowing tax rebates on contributions in exchange for limits on accessibility. The HMRC rules allow for a greater range of investments to be held than Personal Pension Plans, notably equities and property. Rules for contributions, benefit withdrawal etc are the same as for other personal pension schemes.

Rental income from properties can be directed back into the SIPP and not be liable for tax and capital tax gains from selling property is also not subject to tax provided the fund are kept in the Self Invested Personal Pension.

The following are the most popular ways to invest in property through your SIPP:

Commercial Property
Real Estate Investment Trust (REIT)
Land

This list does not include all investment options, but covers the main property investment opportunities.

Typical investments would include:

Shopping Malls, offices, factories and shops
Portfolio of properties, without being a landlord
Land plots on large holiday resorts overseas
UK agricultural land, forestry and green investments

Searching online for a SIPP property investment is the easiest way to start your search. There are many companies with SIPP products suitable for your self invested personal pension. The internet allows you to find the best investments as well as SIPP providers.