Footpath Financial Limited is a firm of Independent Financial Advisers who are authorised to advise on and arrange pensions including SIPPs and in specie transfers of commercial property into them. Based in Farnham and Crowthorne we serve the Guildford, Hindhead, Alton, Farnborough and Basingstoke areas.
A note about SIPPS
SIPPs Explained.
Self Invested Personal Pensions, as the name suggests, are a type of personal pension where you pick the investments yourself, with our help if you need it.
SIPPs are subject to the same rules as other personal pensions. They have the same limits on contributions, the same 25% tax-free lump sum entitlement on retirement and the same options are open to you once you've retired. See our section Annuities & Drawdown for an explanation of your options when retirement comes.
What can you invest in?
The permitted range of investments for SIPPs is very broad and includes stocks and shares on the world's major stock exchanges (and a few of the minor ones too, including those quoted on the AIM), investment trusts, unit trusts, gilts, some types of derivatives and direct investment in commercial property. There were plans to allow investment in residential property, i.e. buy-to-let, and other assets such as wine. However, the government back tracked on these proposals and now only allows indirect investment in such assets.
In the case of commercial property, if you're a business owner, a SIPP can be tax-efficient since the rent you pay to the SIPP comes out of the business's pre-tax income, before your corporation tax liability is calculated. (You're also paying the rent to yourself of course). The SIPP pays no tax on the rental income.
Are SIPPs a good thing?
The main advantage with SIPPs is that you have much more flexibility in terms of the types of investments that you hold within them, including the commercial property option mentioned above.
Call us if you'd like to discuss your options.
