SIPPS and investing in Private limited companies

RutlandGuy

Hi, I have around 100k in my pension pots most of it in a GPP plan managed by Aberdeen Asset Management in a Balanced fund. My wife is looking to purchase a clothing retail outlet and I was considering using a SIPP to invest in my wifes proposed private limited company. The questions I have are:

Is this possible or a desirable thing to do?

And if so:
What constains may be placed on the Pension capital invested in the private limited company?
How might I find an IFA who specialises in this sort of thing.
Does anyone on the forum have any personnel experience they might like to share either in this thread or via a personnel message?

Cheers


Guy Rutland

Lazy_Runner

I do not believe it would be a good idea to invest your pension pot in your wife's business. Whilst I am sure she is an excellent retailer, what happens if she is not? What happens if there is a string of unlucky events. She may lose the business and you would lose your pension pot. You would live your old age in penury? :eek:

Just a thought

EdInvestor

AFAIK it wouldn't be a permitted investment in a SIPP unless you were planning to invest in the building housing the shop.

RutlandGuy

@Lazy Runner: Thanks for your thoughts. Had considered this and was only proposing to use a small amount of my pension pot in this way, but didn't profer this inmy first post as it makes the thread more complicated and I was only on a fact find. I'm new to the site and to taking an active role in investing for my future so lots to learn.

RutlandGuy

EdInvestor wrote: »

AFAIK it wouldn't be a permitted investment in a SIPP unless you were planning to invest in the building housing the shop.

Ed, Thanks


Just done a search on the site and drawn a blank on permitted SIPP investments. Anyone Know where on the web I would find info on the permitted investments allowed in SIPP - explained in plain English?

nrsql

http://www.pimtrustees.co.uk/pages/SIPP/SIPP_What_Can_I_Do_Now.asp