Destini Financial Services is introducing a scheme offering investors the opportunity to hold residential property in a Sipp almost two years ahead of theTreasury's schedule.
Trading New Homes, which trades in off-plan and new-build residential property in the UK, will provide investors with an Aim-quoted trading vehicle.
The scheme offers the same tax incentives as the Treasury plan.
Investors will be able to use the trading vehicle to invest in residential property as a 40 per cent tax-free investment which will be liquid and will have the ability to gear beyond 50 per cent. Investors will not have to manage any property themselves.
At present, residential property cannot be held in a Sipp or SSAS through a pension until 2006. Destini believes that people are being forced to access the investment market through higher-risk buy-to-let mortgages.
The company's property manager is SPM, a wholly owned subsidiary of Solitaire. SPM's role is to find suitable properties for acquisition, monitor the construction process of off-plan properties, manage the completed properties held by the company pending sale and advise on sales opportunities.
SPM has appointed Colliers Capital UK to act as its strategic property adviser.
Destini will be introducing this offer to the IFA marketplace in a two-week roadshow with Durlacher. Durlacher will be dealing with institutional side while Destini will deal with the IFA sector.
Destini group managing director David Collett sees this as an accelerated opportunity for investors, especially with the delays in pension simplification.
Destini head of product development David Cartwright says: “IFA clients love residential property but buy to let is not a tax benefit. Destini is introducing a great opportunity for investors to get into property well ahead of Gordon Brown's tax break in 2006.”