Where normal pension funds are invested in the UK stock exchange, SIPP pensions have a much wider range of investments available. This wider range of investments can offer more stability and security due to a more diversified investment portfolio. Furthermore as the pension saver can cherry pick the investments, a SIPP can offer a higher return and more control. Since you do not need an investment manager, a SIPP is often cheaper and more cost effective than a standard pension.
You can transfer all your frozen and lost pensions in to one SIPP.
Below an example of permitted SIPP investments:
The types of investments open to you through our SIPP include the following:
The SIPP can buy or sell assets from / to the member or persons connected to them, and we can lease commercial property back to the member’s business.
But all connected transactions must be at market value (supported by an independent valuation) and on commercial terms.
A SIPP may borrow up to an aggregate limit of 50% of a member’s net fund value at the time of borrowing (including any Protected Rights).
Any breach is subject to a 40% tax charge (on your SIPP).
For example, if a member has a SIPP worth £300,000 they can borrow £150,000 (enabling them, for example, to buy a £450,000 commercial property).
For more information about the possibilities and opportunities a SIPP can offer, please complete the contact form on our main page: