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What can’t I invest in with a SIPP?

As there are generous tax advantages to saving for retirement through a registered pension scheme, HMRC have laid down certain restrictions to ensure the pension scheme is used for its intended purpose: providing for retirement. Hence HMRC have prohibited certain investments and limited the amount of funds that can be withdrawn from the fund on retirement.

Where the scheme breaches any of these restrictions, Liberty must report these to HMRC and tax charges will be levied on the amount.

 

Investments

• It is not possible to invest in tangible assets (assets which can be removed e.g. non-fixed items in a property).

• Investments which by definition will depreciate in value, such as short hold leases, are not permitted.

• Assets that the member, or anyone connected to the member, will financially benefit from are also taboo and as an extra caution, HMRC do not allow investments in residential property even if on a buy-tolet basis. This also means that where the tenant of a scheme owned property is connected to you, rent must be paid at a commercial rate.

 

Other Investments that Liberty SIPP will not allow

Unquoted shares

Unregulated Collective Investment Schemes (UCIS)

Unregulated investments

Third party loans

Futures and Options

Contracts for Difference (CFDs)

FX

 

Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser

 

Making sense of YOUR pension

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