Self Administered Pension Scheme, How to protect my investment

steveM1978

Hi,

I am 32 years old. I don’t have a pension. I have 3 houses, 2 that I rent out and 1 that I live in. I have a further 3 houses with my brother in law, also rented out.

I have a bit of cash available to buy more houses and would hope to buy in the region of 10 -20 more, these will be with my brother in law. The purpose of this investment is to provide either an income or a lump sum when I decide to sell and retire.

I have been chatting and considering the tax element and I have been advised to set up a self administered pension scheme. Can anyone offer advice on these or any other scheme that I can use to help protect my investment.

I don’t know whether it is relevant or not but each property is mortgaged. I borrow the money from a relative to buy the house and renovate (paying interest on the money) then I remortgage the house to pay back the loan.

zagfles

As I understand it you can't put investment property into a SIPP. The last govt did consider allowing it but were worried about abuse (eg people buying holiday homes which they made use of themselves).

steveM1978

Ok, Does anyone else have any ideas on how to best invest this property for the future?

Loughton_Monkey

I would suggest you see an accountant to test the implications of setting up a company for property investment. At least it might allow you to draw an income and contribute into a tax-free pension (in cash of course).

But to invest in 'capital' investments as an individual is obviously going to incur Capital Gains Tax.