Is this sensible and any suggestion who to do it with?

mcr70

Hi,

I'm in the process of setting up up a SIPP or possibly SSAS to buy a commercial property I already own.

The transaction is a bit complicated as I don't own the whole thing and it's unlikely to be set up before April.

I do still want to take advantages of this year pension contribution and have had it suggested I set up a cheap SIPP where I can hold the funds in cash until I'm ready to go ahead with the commercial property purchase?

I think this makes sense, but am a little unsure about it, plus very unsure which SIPP provider would be the best to use?

The plan would be to hold the fund in cash and then transfer once the new SIPP/SSAS is set up, so I'm looking for a really cheap SIPP where I can hold cash, that has low transfer/exit charges.

I hope that makes sense and any advice very much appreciated.

dunstonh

I do still want to take advantages of this year pension contribution and have had it suggested I set up a cheap SIPP where I can hold the funds in cash until I'm ready to go ahead with the commercial property purchase?

May be better to start with the intended SIPP provider and get it verified with them that the ownership issues are not going to be a problem.

Also, perhaps decide whether you are going to use a SIPP or SSAS now rather than later.

jamesd

The idea of using any personal pension to get money in during this tax year is sensible. Virgin is free but will take about four months from money going in to tax relief that you can withdraw or transfer being available. Hargreaves Lansdown will apply the relief in the month after the month of paying in but charges a couple of hundred Pounds for closing the account within a year.