ANNOUNCING
ISIPP: THE INTERNATIONAL SELF INVESTED PROPERTY PENSION
There
has been a great deal of press coverage on the subject of
investment in overseas property using SIPPs
– much of it misinformed and unbalanced.
ISIPP has been launched to provide advisors
and their clients with a comprehensive service to enable
the tax-efficient investment in overseas property using
a SIPP.
It is a joint venture between three professional firms,
all specialists in their fields;-
MW PENSIONS LTD: Providers of the MW
SIPP, one of the few to allow overseas property
investment.
JOHN HOWELL & CO: International property
lawyers with a wealth of experience in foreign investment.
UHY HACKER YOUNG: International tax advisors
and accountants.
Overseas
property investment is a complex business, doubly so when
using a SIPP.
ISIPP provides a specialist, seamless service to
deal with;-
-
Different legal systems
-
Different tax systems
-
Countries that don’t recognise trusts
-
Inland revenue compliance
-
Annual tax returns
-
Local tax issues
-
Foreign exchange issues
In short
ISIPP will provide a structure for tax-efficient
property investment that takes the tax and legal issues
of a particular country into account. It will purchase the
property, using the SIPP, in a way that
will minimise local taxes, using the expertise of our legal,
tax and SIPP specialists. This will include
both the set-up, purchase and ongoing administration and
advice.
ISIPP
is the International Self Invested Property Pension.
It is designed to provide overseas property investors and
their advisors with a comprehensive service and the appropriate
structure to give tax-efficient pension investment. This
takes into account the different legal and tax issues that
change from country to country.
WHICH COUNTRIES WILL ISIPP COVER?
SPAIN,
CYPRUS, CANADA, FRANCE, BULGARIA, CAPE, VERDE, PORTUGAL,
SLOVAKIA, DOMINICAN REPUBLIC, ITALY, TURKEY, USA, NEW ZEALAND,
AUSTRALIA, SOUTH AFRICA
AND
FROM APRIL 2006?
CROATIA,
CZECH REPUBLIC, MALTA, MONTENEGRO, HUNGARY, CARIBBEAN, BRAZIL,
ROMANIA, ARGENTINA, MOROCCO, THAILAND, PANAMA, EGYPT, MALAYSIA,
POLAND, ALGERIA, TUNISIA, SLOVENIA
HOW
CAN ISIPP HELP YOU?
Buying overseas property is a complex business – doubly
so wh, doing it using a SIPP;-
-
Different legal systems in each country
-
Different tax systems in each country
-
Some countries recognise trusts, others don’t
-
Compliance with Revenue rules required
-
Different land registry rules
-
Annual tax returns
-
Foreign exchange issues
WHAT DOES ISIPP DO?
- Sets
up the SIPP, transfers the funds etc
- Sets
up the appropriate structure to meet the country’s
legal/tax rules
- Full
legal process and purchase of the property
- Valuation,
conveyancing, planning issues, title etc
- Three
yearly valuation
- Audit,
annual tax returns, local tax returns
- Mortgage
arrangement
- Foreign
Exchange
- Arrange insurance/property management
WHO
IS ELIGIBLE?
In theory anybody. But in practice it is unlikely if a client;-
a) Doesn’t have a transferable pension
b) Is not in a position to make contributions
c) already drawing a pension
This doesn’t mean you can’t buy
an overseas property it means that it is unlikely you will
be able to use a SIPP.
ANYTHING
ELSE?
Remember that this is an investment. It
is not a cheap way of buying a holiday home, although private
use is allowed, providing market rental is paid. It should
be regarded as a long term arrangement as SIPPs
cannot trade.
Property is not a regulated investment. Our advice is to
treat it as if it is. This will help avoid the issue of
mis-selling. This could become a major issue as the SIPP
marketplace changes with inexperienced investors making
“lifestyle” choices.
As an investment, diversification is a way of spreading
risk. A good way of doing this is investing in a larger
development or portfolio as part of a property syndicate.
Syndication can allow people with relatively modest funds
to invest in much larger developments/portfolios.
We are syndicate specialists and have a panel of lawyers
who can provide a syndicate agreement cost effectively.
From April 2006 the “connected parties”
rule goes. This means that people who already own overseas
property can transfer the property into a SIPP.
This could crystallise a CGT issue. Clients will need “joined
up advice”
ISIPP DOES NOT GIVE FINANCIAL ADVICE
