Pensions

Following the pension changes bought about by A-day 2006, SIPPs can now invest in unquoted assets including investment vehicles for land development.

As the land will be sold prior to any housing development SIPP will not be deemed to hold taxable property.

A SIPP is similar in many ways to a normal Personal Pension Plan. They come under the same basic rules as far as contributions, tax relief, eligibility etc are concerned.

A SIPP however allows the plan holder much greater freedom in what to invest in and for the plan to hold these investments directly. The plan holder can have control over their investment strategy.

Funds from a SIPP can come from two ways, from existing pensions which are transferred into the SIPP, or contributions. A personal contribution can be made up to an individuals UK relevant earnings with a maximum of £235.000 for the 08/09 tax year for which tax relief will be granted.

Example: Investing a gross £10,000 - A personal contribution is paid net of basic rate tax, from 6th April 08 if you invest £8,000 the SIPP administrator would claim £2,000 back from HMRC on your behalf. If you are a higher rate tax payer you would claim either through your self assessment or by a stand alone claim, a further relief of £2,000. In effect the actual cost to a higher rate tax payer is only £6,000.

If an employer is making the contribution it will be normally treated as a business expense.

With very few exceptions a SIPP is free from both Capital gains and Income tax as long as it is correctly established. Consideration should be given to the underlying investment vehicle's tax position. All other taxes such as stamp duty, vat etc still applies.

In most circumstances, on death prior to age 75 the fund will be free of IHT.

There is not an established secondary market for this type of investment and SIPP and it may not be suitable for those needing to take benefits in the short term.

Intelligent Land Investments have negotiated a competitive set up and annual administration fee for those investing through Yorsipp. Neither Yorsipp nor Intelligent Land Investments can give advice on pension transfers or the suitability of a SIPP or investment choices. Independent financial advice should be sought. Yorsipp is regulated by the Financial Services Authority.

A deposit of £1,000 is sent to Lawyers Biggart Baillie to reserve your shares. You are then sent the Information Memorandum which has the full details of the investment opportunity. After reading it you decide if you wish to proceed by sending in the balance of your reservation or to request your deposit back from Biggart Baillie.

Along with Planning Consultants Keppie Design we put our sites through the full planning process and cover the costs. We also take care of the legal side of the investment. Our shareholders can relax in the knowledge that we are working as hard as possible to ensure that their investment is returned with the maximum amount available.

The difference in value between strategic land without and strategic land with planning permission can be remarkable and that is why our investors can expect up to a 400% return of their investment. For more details on this please go to our latest investment site.