SIPP - Unquoted Shares

stebiz

I have a SIPP with about 50k in it. I am not really looking for it to provide a retirement provision as I have other pension plans ie properties I own.

I would like to throw the 50k into a high risk unquoted football club. The returns could be massive but could also go bust and I guess I could lose the lot. That really isn't the issue.

The club don't give a dividend and I would happily pay the management fee. Are there any pension companies out there who would deal with such a venture?

Also anything that I have not thought of that is blatantly obvious??

Appreciate any thoughts.

mania112

A quality IFA will struggle to do this for you, simply because it's incredibly high-risk.

You can convince them you have the capacity for loss and are a sophisticated investor, and that would be fine.

Point is, many are ABLE to help, few will be WILLING.

Search for someone near you at: https://www.unbiased.co.uk

thenudeone

https://www.curtisbanks.co.uk allows unquoted shares in a SIPP. A few other providers do as well, but sometimes the conditions are quite onerous.

They were quite helpful when I used them for this purpose. They didn't require an IFA sign off but they did want details of my other pensions to check that I wasn't risking a large proportion of my psnsion assets on a high risk investment.

There are usually one-off and annual monitoring charges for this type of investment. If you have no other formal pension investments it may be difficult to persuade anyone to accept that 100% of your pension assets should be put in a high-risk asset, even if you sign disclaimers.

GordonSadler

On a similar track, and I've posted this is the employment thread without reply, could stock options or stock that come as part consultancy/contracting arrangement be put into a sipp?

thenudeone

There are limits on what unquoted shares can be put in a SIPP.

IIRC it is not possible if you, a close family member or a business parter are a director or own or control 20% of the shares.

The purchase of options on an unlisted shares could possibly be included AFAIK, but if you wanted to transfer existing options or unlisted shares in your name, your SIPP would probably need to "buy" the shares from you, and you would probably need an independent valuation to satisfy HMRC that you weren't using the system as a way of extracting cash from your pension illegally.