19 June 2008
- Webcast for
advisers on investing in commercial property in a SIPP now available on www.alliancetrust.co.uk/adviser
PLEASE NOTE: A special
preview of the webcast for journalists only is available at www.alliancetrust.co.uk/pressplayer
Alliance Trust Savings has published a webcast and bulletin to explain
to advisers the pros and cons they should consider when looking at investing in
commercial property in a SIPP. The bulletin and webcast also detail the process
involved in putting property in a SIPP, explain when a mortgage is needed, and outline
points to consider once you are holding the property in a pension.
Pensions Development Manager Steve Latto said, “We have a number of clients who find it suits their needs to put a
property in a SIPP and often these are professionals who place their work
premises within their pension scheme. For example, a dentist may put his
surgery in a SIPP or a group of barristers might put their legal offices in
their SIPPs. Obviously property valuations can fluctuate and this can be an
illiquid investment, so advisers must look at the property being considered,
who will occupy it and the likely rental income to be received by the SIPP.”
“Investing in commercial property in a
SIPP can be attractive to clients because the investment is held in a tax-free
environment where rental income is not taxable and there is no liability to
capital gains tax when the property is sold. These tax breaks and the opportunity
for the pension to borrow to help fund a property purchase have to be balanced
against other factors such as the potential costs, which can be significant,
and that holding a property may offer little liquidity. In our bulletin and
webcast, we have tried to give advisers a clear starting point when considering
using this interesting option that SIPPs offer their clients.”
“Fads for investing in commercial property
come and go with market fluctuations. However, investing in a pension is a
long-term decision and advisers should always consider the longer term trends
for property because the capital value of the investment will be locked up
inside the pension, and the purpose of a pension is to build a fund for your
retirement.”
In its latest Pensions Bulletin Alliance
Trust Savings lays out some of the advantages and disadvantages advisers should
consider when examining whether to invest in commercial property through a
SIPP. Advisers can read the analysis in the Pensions Bulletin called ‘SIPPs: investment
in commercial property”’ and in a webcast that is available on the Adviser
Centre of Alliance Trust’s website at www.alliancetrust.co.uk/adviser
Advisers can request future e-newsletters from Alliance Trust Savings by
emailing businessdevelopment@alliancetrust.co.uk
and they can register for all additional services on the adviser centre at www.alliancetrust.co.uk/adviser
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Contacts
Jane Holligan, Media Relations Manager Anna
Schirmer / Stuart Lerman / Anna Moulds Alliance Trust Lansons
Communications Tel +44 (0)1382 306064 Tel +44 (0)20 7294 3605 / 3674 /
3681 Mobile 07745 783212 Email Email jane.holligan@alliancetrust.co.uk Web www.alliancetrust.co.uk |
- Alliance Trust
Savings offers investment dealing and pensions to individual investors and
their advisers through its enhanced wrap platform. Alliance Trust Savings provides
sharedealing, investment wrapper accounts such as ISAs, a full range of
Self-Invested Personal Pensions, and accounts for investing for children
such as First Steps and its Children’s SIPP.
- Alliance Trust
Savings is one of the
- Alliance Trust Savings administers
assets on behalf of more than 53,000 customers (at end March 2008)
- Photographs of Steve
Latto and the Pensions Bulletin factsheet are available on request.