Liberty SIPP

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The weather outside is frightful

So put commercial property into a safe haven!

In this long winter of economic distress, many perfectly good businesses are likely to come upon hard times as a result of cash flow and a freeze on demand.

Now could be the time to put your business premises into a SIPP, and snatch them from the claws of creditors. Provided the business is solvent at the time of transfer, immunity is normally guaranteed.

It isn’t just a defensive measure; there are perfectly good financial reasons and you actually gain from the value being depressed, as the Capital Gains Tax due will be lower or even, in some circumstances, nil. On disposal there is never any CGT, so the lower the present value, the greater the tax saving if the property is sold in happier times.

However you might not want to sell the property for a long time. If your company the rent will be allowable as an expense, but the SIPP receives it tax-free. It’s a great way of arranging a pension when the time comes!

How is it done? There are 2 methods:

• If the SIPP has sufficient funds from contributions and/or transfers from other pension arrangements, it could buy the premises. This could be done unilaterally, in conjunction with other SIPPs, or jointly with someone else, perhaps you personally
• All or part of the property could be put into your SIPP as an “in specie” transfer and, if it was a personal contribution, gain tax relief!

Needless to say no two situations are alike but if you would like to discuss this further please contact us on 01706 826511.

Feb 5, 2009