Question:
Can I use the Transfer Value from one of my Pension Schemes to fund a SIPP that I will use to buy residential property and be able to set off the costs of the borrowing obtained to buy that property?
Does the property need to be in the name of the SIPP or can it be held by the SIPP but be in my name? Do I need to use a professional adviser to set up the SIPP?
Arthur Weller Replies:
It is not clear to me exactly what your intention is in your question. However, I can say the following: Restrictions apply to 'investment-regulated pension schemes', broadly those where one or more members can direct, influence or advise on the investments the scheme makes.
One of the main examples of these is a SIPP. The restrictions apply to investments in 'prohibited assets', which includes residential property.
The rules apply both to direct investment and also indirect investment where it has been used to get round the new rules (such as a SIPP holding all the shares in a company that owns residential property).
