With a SIPP syndicate you can club together to purchase property with other parties

You can, for example, purchase property in conjunction with a number of unconnected individuals to each buy a piece of a property. Some of these individuals may not even have a SIPP and may be making a personal investment. The SIPP investors can also buy a piece of the property within this structure and in many cases will form an essential part of Inheritance Tax planning for UK and worldwide assets.

• It possible to form a SIPP syndicate to buy property of higher value - or more than one property
• Each SIPP can raise a mortgage of up to 50% of the net SIPP assets. Therefore a SIPP fund of £100,000 could borrow up to £50,000 and thus invest up to £150,000 into the property syndicate
• At long last the law has changed for SIPPs to accept Protected Rights. This will be from 1st October 2008

The unique use of the Sipp combined with a syndicate opened the door for investors who cannot afford or may not wish to purchase a whole property whilst taking advantage of the pension to shelter lease income and capital gains from tax. It may be that you have considered investing part of your pension in commercial property and also wish to invest in different asset classes.

Syndication gives the greatest flexibility to enter the commercial property market

What are the benefits of using a Syndicate SIPP?

• Existing pension funds can be used as deposit
• Any rental income generated is free of UK income tax and paid gross
• The fund grows free of UK tax
• No UK capital gains tax is applied on the disposal of a property
  Outside of estate - free of inheritance tax
• Contributions into the plan qualify for corporation tax relief or personal tax relief at marginal rate - i.e. - Up to 40%
  The investment when sold is free of Capital Gains Tax (CGT) payable on gains on the disposal of the property held in the SIPP
• No limit on the number of properties which can be purchased (providing contribution and mortgage limits are not exceeded)
• Borrowing is allowable to assist in the purchase - ie: Gearing
• Limited Recourse on lending ie. No liability to the member outside of the pension fund assets
• Pension funds can Syndicate to purchase “blue chip” premier properties; which attract higher rental incomes and equity growth
• All legal costs and expenses are payable from the SIPP
  Rental income is paid gross into the SIPP and is not a pension contribution from the member
• VAT is reclaimable by the SIPP if property is VAT registered

We are completely independent and have no affiliations with insurance companies. We do not give financial advice; we leave that to the experts. No fees, with no small print. We neither take nor give commissions regarding SIPP’s and we don’t have transaction charges – we pass everything on to the client.

The laws and rules governing Pensions are subject to change and update. This needs to be borne in mind when using the information on this website which was up to date on our understanding of the law at the time of writing. We will be updating the information on a regular basis

If you would like to become part of a SIPP syndicate fill in your details below and one of our advisors will be in touch shortly.

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