Short selling in a SIPP

weavingthrough

Does anyone know of a SIPP that permits short selling UK shares (and/or) CFD's within a SIPP?

(HL and Sippdeal do not provide for this.)


Thanks !
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WT

RainMaker_2

I'd also be interested to know if there are any that will allow this.

In theory it is allowable. But in practice the SIPP provider would block any trade where the potential losses exceed the assets of the SIPP, which is always the case when short selling.

The problem they have is that as joint trustee's they are also liable for any loss in excess of the SIPP value. The solution, it would seem, is to personally absolve the SIPP provider of any excess losses. I've written to one provider to see if this can be done and they are looking into it. I'll post up the answer here when I get it.

In the meantime, anybody else have any input ?

jamesd

HL allows the purchase of covered warrants and that may be sufficient for some purposes.

A combination of short or long within the SIPP and the opposite outside has some potential uses if you can put the outside one on the side that you think is most likely to come out ahead.

cing0

Its been mentioned before, thanks to an OP on another thread that you can do this to a limited extent with both providers only via ETF's.

property.advert

I would have thought a stop loss would cover the legal requirements but that also eats into the potential profits.

RainMaker_2

property.advert wrote: »

I would have thought a stop loss would cover the legal requirements...

Not really, the market could gap though the stop.

Stuart01

[FONT=&quot]There is a rise in short selling of properties. Banks have been giving loans to a lot of people without checking their credit worthiness. This led to foreclosure in the real estate sector; the properties are available at very less prices so it is good opportunity to invest. [/FONT]

Loughton_Monkey

If you could find a suitable 'instrument' that you knew was on the rise, I guess if shorting was allowed in the SIPP, you could go long for an equivalent amount outside the SIPP. So imagine you make £2K profit on the 'long', that's plus £2K and no CGT. In the SIPP, you've managed to 'lose' £2K but because of tax when you draw it out, you've only lost £1.6K. [Forgetting the small charges on both sides of the 'investment'].

Trouble is, if it goes the other way, you lose out. Therefore, if you had the confidence to go long in the SIPP, and short outside it, you'd still be better off just not shorting it outside.

tangyfog

SUK2
ETFX FTSE® 100 Super Short Strategy (2x) Fund £
HL SIPP

forevergrey

tangyfog wrote: »

SUK2
ETFX FTSE® 100 Super Short Strategy (2x) Fund £
HL SIPP

Or XUKS - FTSE® 100 Short ETF - if you didn't want the gearing.

richone

James Hay will allow it