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Loan from my SIPP
evening all,
I recently read an article online about the possibility of loaning funds from my SIPP to an un-connected 3rd party private limited company and charging a market rate of interest for doing so.
Can anyone advise of any SIPP providers that would allow me to do this? Also if there are any potential pitfalls for doing so, i.e any unexpected tax bills etc? Or % (of SIPP) I can loan to the company. Any pointers in reliable information would be fantastic. I have tried to sift through numerous pages of information online but find some of the information is contradictory or sounds too good to be true, which is unnerving.
Thank you in advance. :beer:
I recently read an article online about the possibility of loaning funds from my SIPP to an un-connected 3rd party private limited company and charging a market rate of interest for doing so.
Can anyone advise of any SIPP providers that would allow me to do this? Also if there are any potential pitfalls for doing so, i.e any unexpected tax bills etc? Or % (of SIPP) I can loan to the company. Any pointers in reliable information would be fantastic. I have tried to sift through numerous pages of information online but find some of the information is contradictory or sounds too good to be true, which is unnerving.
Thank you in advance. :beer:
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Comments
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Pitfalls - what if the company loses all your money??0
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It’s a person and business I trust in, so I’m comfortable on that front.0
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I can't see any advantage over just taking out a loan from a loan co. as opposed to using a SIPP which I have never heard of before ?0
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You might find this link useful: https://www.curtisbanks.co.uk/assets/downloads/guides/guide-loans.pdf
I found it by Googling "sipp loans to unconnected parties". There were lots of other hits - all saying either here is what we allow OR you can't do this with our SIPP.
Email your existing SIPP provider to see if they will allow you to setup a secured loan from your SIPP.
Please update us how you get on.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
Isn't it illegal and subject to a 55% tax charge?0
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