Using pension funds to purchace commercial assets?

JoinerJohn

I have heard that it is possible to use pension funds to purchace commercial assets (in this instance a vehicle) which then is regarded as an investment for future pension income.

I have two pension ploicies both with L & G

The first is worth around £3500 and is non protected but classed as paid up in 1999.

The second is protected and worth around £14K

I am a self employed and recently divorced joiner (my ex wife made no claim on my pension luckily)

I really need a new van (an asset to my company which, though depreciating will allow me to contribute to my pension scheme in a far more posative way than is presently the case!)

Does anyone know how this might be possible? - I know it can be done as I know of a company that purchaced a crane using pension funds.

If that is not the case then my other option is to try to build my pension fund up to £25K so that I can invest in a SIPP and then invest that in a REIT (assuming they are still a good investment?) or trade stocks through the SIPP.

Any and all advice very much appreciated!

EdInvestor

JoinerJohn wrote: »

I have heard that it is possible to use pension funds to purchace commercial assets (in this instance a vehicle) which then is regarded as an investment for future pension income.

No not possible, not even in a SIPP

If that is not the case then my other option is to try to build my pension fund up to £25K so that I can invest in a SIPP and then invest that in a REIT (assuming they are still a good investment?) or trade stocks through the SIPP.

Minimum amount for a low cost online SIPP is usually 3,600 so you could move your non PR money over now.PR money is expected to be allowed in SIPPs from next October.

These providers are good if you want to buy shares:

https://www.sippdeal.co.uk
https://www.alliancetrust.co.uk

Sippdeal also has a scheme whre you can shoose your own broker, which might be cheaper if you did a lot of trading.

dunstonh

If that is not the case then my other option is to try to build my pension fund up to £25K so that I can invest in a SIPP and then invest that in a REIT (assuming they are still a good investment?)

Its possible now with personal pensions of hybrid SIPPs. However, REITs have not been a good investment since they became available. (either in direct investment or fund based form). You would be down around 30% on average had you done it this time last year.

What made you think they had been good?

JoinerJohn

Mmmm...thats a blow...feel sure there must be a way of getting to the funds (even if technically illegal) - after all Maxwell managed it - given that it's my bloody pension, I should be able to!!!

I thought REITs would be good as they gave (I thought) the opportunity to be a part of bigger and therefore more profitable? property deals than would perhaps normally be the case.

Have to confess I havn't kept an eye on the performance of companies like British Land post conversion to REIT status, but cant imagine their share holders are too happy!