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wokinghamman

Sipps ---oooops

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Seems residential properties are to be excluded from SIPPS....

http://news.bbc.co.uk/1/shared/bsp/hi/pdfs...report_1980.pdf

"5.63 ... from 6 April 2006 SIPPs and all

other forms of self-directed pensions will be prohibited from obtaining tax advantages

when investing in residential property, and certain other assets such as fine wines.

This action will ensure that tax relief is only given to those whose purpose in making the

contribution is to provide themselves with a secure retirement income. However, the

Government remains committed to encouraging investment in a range of assets as part of

pensions saving and is therefore minded to allow SIPPs to invest in genuinely diverse

commercial vehicles that hold residential property, such as the proposed Real Estate

Investment Trust model (detailed further in Chapter 3). The Government will not hesitate to

take action if it becomes clear that people are trying to use collective vehicles to get around

the rules for prohibited assets."

ooops!

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Seems residential properties are to be excluded from SIPPS....

http://news.bbc.co.uk/1/shared/bsp/hi/pdfs...report_1980.pdf

"5.63 ... from 6 April 2006 SIPPs and all

other forms of self-directed pensions will be prohibited from obtaining tax advantages

when investing in residential property, and certain other assets such as fine wines.

This action will ensure that tax relief is only given to those whose purpose in making the

contribution is to provide themselves with a secure retirement income. However, the

Government remains committed to encouraging investment in a range of assets as part of

pensions saving and is therefore minded to allow SIPPs to invest in genuinely diverse

commercial vehicles that hold residential property, such as the proposed Real Estate

Investment Trust model (detailed further in Chapter 3). The Government will not hesitate to

take action if it becomes clear that people are trying to use collective vehicles to get around

the rules for prohibited assets."

ooops!

Holy Sh*t!!! with this and poor christmas trading figures, I wonder if this will be a major catalyst to popped bubble?

I wouldnt mind betting that it is. All that positive spin, that was keeping the market propped due to promises of SIPPS has now been removed. Down Like a house of cards.....

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Has he just blown SIPPS out the water?

I'd like to know too. Where's our SIPPs experts ? Financial Planner and Bubble Pricker ?

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Guest

... and can we have a quick layman's on "Real Estate Investment Trust model", from someone in the know? I haven't heard of this before.

Thanks.

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We live in a cheap country.. Well an affordable country..

but with no children of our own our generation is going to have a hard time retiring..

(forget taxes.. I was going to move in with the buggers as soon as I lost control of my bladder..)

High House prices were going to kill the country... as we entered a holding pattern and our peers entered a massive debt crisis...

No life for us.. a life of massive debt for others.

this might have been the most important decision made for the countries future

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I'm not convinced that this will make much of a difference... but good riddance to what would have been an unfair handout to the mega rich.

REITs are a far more equitable approach and will help build the residental lettings sector within a more professional framework. Large property management companies will build up portfolios of cheap residential property once the small scale BTL landlords realise they need to dump their shoddy little shoeboxes!

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'Brown bursts Sipps bubble'

YIIIIPPPPPPPEEEEEEEEEE!!!

Muha ha ha ha ha ha ha ha !!!!! :lol::lol::lol::lol:

horror_of_dracula.jpg

I smell blood .....

Edited by Warwickshire Lad

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... and can we have a quick layman's on "Real Estate Investment Trust model", from someone in the know? I haven't heard of this before.

Thanks.

Initial reaction here at "large pan-European IFA" is that it completely stuffs residential property in a SIPP. Not only will tax relief not be payable but "tax advantages" eg gross roll up - has also disappeared.

REITs are collective investments. Big business but really only in the commercial property market. They can borrow and they can gear up.

The Fox

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Has he just blown SIPPS out the water?

Seems to good to be true

You lot are getting as sneaky as VI's at trying to hide key points in a text. You missed out:

"For the purpose of funding purchases of holiday or second homes for their or their familys personal use" will be prohibited from obtaining tax advantage.

Naughty, naughty!

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Guest

Initial reaction here at "large pan-European IFA" is that it completely stuffs residential property in a SIPP. Not only will tax relief not be payable but "tax advantages" eg gross roll up - has also disappeared.

REITs are collective investments. Big business but really only in the commercial property market. They can borrow and they can gear up.

The Fox

Thanks, foxy!

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This is amazing news, not that it would have had a huge effect come Aprt 06 but there are so many muppets I know who were clinging on to the SIPPS dream to save them I dont know what they are going to do now. Get ready for an avalanche of flats coming to market over the coming weeks.

Love to see there faces when they pick up the paper on the train tomorrow.

:lol::lol::lol::lol::lol:

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Although this is great news it seems to read "investing in holiday homes is a bad idea" and then go on to say "so we're stopping tax advantages in all residential property". This can't be right. It names one problem and then goes against something else entirely.

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You lot are getting as sneaky as VI's at trying to hide key points in a text. You missed out:

"For the purpose of funding purchases of holiday or second homes for their or their familys personal use" will be prohibited from obtaining tax advantage.

Naughty, naughty!

Not at all. Read the article for yourself:

http://www.thisismoney.co.uk/retirement/ar...13&in_page_id=6

'To prevent the potential abuse of the simplification rules, where people could claim tax relief in relation to pension contributions into Sipps for the purpose of funding purchases of holiday and second homes for their or their family's personal use, from 6 April 2006 Sipps and all other forms of self-directed pensions will be prohibited from obtaining tax advantages when investing in residential property, and certain other assets such as fine wines.

'This action will ensure that tax relief is only given to those whose purpose in making the contribution is to provide themselves with a secure retirement income. However, the Government remains committed to encouraging investment in a range of assets as part of pensions saving and is therefore minded to allow Sipps to invest in genuinely diverse commercial vehicles that hold residential property, such as the proposed Real Estate Investment Trust model.

'The Government will not hesitate to take action if it becomes clear that people are trying to use collective vehicles to get around the rules for prohibited assets.

Edited by IPOD

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It was mentioned here in the office and I just sat and stared and I couldn't believe it.

'It's true?' I stammered

They said, 'it's true'

Ooh, my heart jumped for joy. I was in wonderland. I was in heaven.

Heaven, I'm in heaven.

YEEEEEEEHAAAAAAHAHAHAHAHAHAHAHA

:lol::lol::lol::lol::lol:

Fack knows what Hargreaves Lansdowne are going to do with their 4000 SIPPs they sold to get people into res prop.

Edited by Financial Planner

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OLDFTB

"You lot are getting as sneaky as VI's at trying to hide key points in a text. You missed out:

"For the purpose of funding purchases of holiday or second homes for their or their familys personal use" will be prohibited from obtaining tax advantage.

Naughty, naughty!"

If you re read it they are saying that for the reason you quote above they will not allow ANY residential property into pensions except through reits.

Maybe the old dementia is setting in. :D

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You lot are getting as sneaky as VI's at trying to hide key points in a text. You missed out:

"For the purpose of funding purchases of holiday or second homes for their or their familys personal use" will be prohibited from obtaining tax advantage.

Naughty, naughty!

I share your disbelief but he clearly says "SIPPs and all

other forms of self-directed pensions will be prohibited from obtaining tax advantages

when investing in residential property".

It could be that it is loosely worded and what he means by residential property is only property that the retiree (or connected parties) live in, but most discussion of SIPPs has lumped together all residential property - whether for a profit or not.

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All those property flippers and speculators that have bought this Autumn to sell on in the Spring to the SIPPERs have just been flipped by Gordon. :lol:

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Ooh, my heart jumped for joy. I was in wonderland. I was in heaven.

Thank you FP ! I'm definitely going out for a beer or three tonight ! If you seem me on later here just ignore me, cos I'll probably be as pissed as a fart. :lol:

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I think Brown realised that the SIPPs tax reliefs on residential property were going to cost the Treasury much more than originally thought, and as the public finances are already stretched as it is, he simply can't afford it.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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