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Sipps & property purchase

Can a SIPP be used to purchase an up and running business which is a cottage being let out on a weekly basis ?8. I understand that it may not be occupied by the SIPP owner nor any of their beneficiaries.

Comments

  • thenudeone
    thenudeone Posts: 4,462 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Domestic properties cannot be held in a SIPP unless it's part of a "genuinely diverse commercial vehicle", i.e. the property is no more than 10% of a portfolio, and the value is over £1m

    Otherwise it would be ripe for avoidance of IHT and CGT.

    here's one explanation:
    http://www.mwpensions.co.uk/handouts/residential%20property.pdf
    We need the earth for food, water, and shelter.
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  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Not permitted, thenudeone has explained why: residential property ban.
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