SIPPS shock from Gordon
Discussion
Don't know if anybody else has picked this up by our future Prime Minister has just changed his mind about people being able to put a residential property into a SIPPS.
www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/12/06/cnbusip06.xml&menuId=242&sSheet=/money/2005/12/06/ixcitytop.html
Personally I would be very warey ( as I have previously said on this forum ) of any 'too good to be true' tax breaks that appear to dispropotionately favour higher rate tax payers that emanate from this government. They can and will change the rules at will, even retrospectively.
www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/12/06/cnbusip06.xml&menuId=242&sSheet=/money/2005/12/06/ixcitytop.html
Personally I would be very warey ( as I have previously said on this forum ) of any 'too good to be true' tax breaks that appear to dispropotionately favour higher rate tax payers that emanate from this government. They can and will change the rules at will, even retrospectively.
minicity said:
I think the SIPPS thing has been handled really badly -but I actually think the final decision is the right one. It was one of the silliest ideas I'd ever heard.
Yes I actually agree with that. Alot of middle class would-be property developers up and down the country won't be very happy though, especially the ones who've put down deposits 'off plan' already for flats that will be complete next spring.
minicity said:
Funnily enough - I am now getting vague memories that when I first heard about SIPPS there was a warning that the detail was not finalised and things might change before next April. It registered with me at the time because I thought the idea was so daft. Anyone else remember this?
All I remember is w/e broadsheets crapping on about a £7bn "wall of money" hitting the property market.
Glad to see that my long held mantra that "if the sunday papers financial sections are recommending it, either avoid or sell that asset class" is still providing me with good advice. They're a great contrarian indicator as they seem to specialise in persuading investors to get in at the top of any market just before the correction.
axeman30 said:
I think the SIPPS thing has been handled really badly -but I actually think the final decision is the right one. It was one of the silliest ideas I'd ever heard.
Yes I actually agree with that. Alot of middle class would-be property developers up and down the country won't be very happy though, especially the ones who've put down deposits 'off plan' already for flats that will be complete next spring.
Whats the "Middle Class" comment for?
Jaglover said:
I think the SIPPS thing has been handled really badly -but I actually think the final decision is the right one. It was one of the silliest ideas I'd ever heard.
I don't
What is the difference between a pension plan investing in property or in the stock market?
It would have allowed those working for their futures to actually have some more control over their pension funds.
rich1231 said:
I think the SIPPS thing has been handled really badly -but I actually think the final decision is the right one. It was one of the silliest ideas I'd ever heard.
Yes I actually agree with that. Alot of middle class would-be property developers up and down the country won't be very happy though, especially the ones who've put down deposits 'off plan' already for flats that will be complete next spring.
Whats the "Middle Class" comment for?
To annoy you Rich
And also because the most generous tax relief applied to 40% tax payers. Oh and because the w/e broad sheets seem to have been obsessed with the idea. They do tend to attract a certain readership.
>> Edited by axeman30 on Tuesday 6th December 10:30
Aside from the rights and wrongs of the idea in the first place, it does seem diabolical that the idea is launched, and within 6-months reneged upon. For someone who was vaguely considering this as an option to try and recoup some of my pension fund that went t1ts up with Equitable Life, it hardly endears pensions to me as a worthwhile exercise.
Oh, but hang on a minute, isn't this the same government that has suddenly got all worried about pension provision and wants to do more to encourage uptake? Far too politicised for someone to risk putting their capital for the next couple of decades.
Perhaps I should give up generating wealth for the nation and become a public servant, retire on ill-health at 50 and not have to worry a stuff about who's got to pay for it.
Oh, but hang on a minute, isn't this the same government that has suddenly got all worried about pension provision and wants to do more to encourage uptake? Far too politicised for someone to risk putting their capital for the next couple of decades.
Perhaps I should give up generating wealth for the nation and become a public servant, retire on ill-health at 50 and not have to worry a stuff about who's got to pay for it.
Oh it also means that if you've been stuffing money into your SIPP in anticipation of the rule change......well that's tough, you cannot withdraw it now until you retire.
As Iv'e posted before, the tax benefits of a pension come at a cost, you put that money under government control.
As Iv'e posted before, the tax benefits of a pension come at a cost, you put that money under government control.
axeman30 said:
Can anyone summarise, I haven't had a chance to check it out
You will not be able to put residential property in a SIPP and receive tax relief on it.
not surprised that fell through, it was the only plan I had for my future, but it did sound too good to be true
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