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Hay wants Sipp commercial property gearing increase

James Hay & The IPS Partnership is lobbying the Treasury to increase the Sipp commercial property investment gearing allowance to the pre-A-Day level of 75 per cent.

Under current HMRC rules imposed by the previous Labour Government in 2006, Sipps can only expose themselves to 33 per cent of a property’s value.

James Hay & The IPS Partnership business development director Richard Mattison says the number of new property purchases by Sipps has reduced by around two-thirds as a result.

He says: “At a time when a return to the previous regime would help to increase the level of savings, boost demand for commercial property, help to get the banks lending, provide assistance for small businesses and entrepreneurs and help the rural economy, we think that the number one objective for the Sipp industry in 2011 is to get the pre-A-Day borrowing limits reinstated.”

Worldwide Financial Planning IFA Nick McBreen says: “HMRC’s post-A-Day policy on the gearing allowance was very Draconian and totally unnecessary.”


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. More free publicity and a non story.

    The number of property purchases reduced by two thirds? Maybe thats more to do with your product / marketing than the rules as I havent seen a marked decrease.

    And why only SIPP? While you are at it why dont you ask them to change the SSAS rules back to the pre A-day ones?

  2. Its an old story but it does make sense. Surely this would aid the “on its knees” property market provided you could find a lender brave enough to open their coffers. If the Government are considering Flexible drawdown and early access to pensions, they must be considering anything to get money into the economy.

  3. How does this differ from exactly the same story posted by exactly the same person from exactly the same company in exactly the same site on 15th July?

    Set your diaries for May, see if they re-hash it a third time…

  4. Hyman Wolanski (MD, Sippchoice) 10th December 2010 at 11:04 am

    Let’s get real. Yes, of course, many SIPP members (and administrators) would like to see the pension gearing rules improved. But is this really something that the Treasury is likely to have any interest in at the present time … and is this really ‘the number one objective for the Sipp industry’?

  5. I would be interested to find out if there was a response the last time they asked HMRC this question in July, as suggested by a MM article at the time:

    “IPS wants return of 75% Sipp property borrowing
    15 Jul 2010 8:00 am | By Helen Pow ”

    Anyone from IPS care to comment?


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