View more on these topics

Scottish govt U-turns on Sipp property transfer charges

Tax-Taxation-Blocks-700.jpgThe Scottish government has reversed course on charges for in-specie transfers which means some savers are potentially in line for a rebate.

In-specie transfers are where a property moves from one scheme to another without being converted into cash.

In October last year Revenue Scotland said it would remove the stamp duty exemption for property transfers between Sipps.

This meant the Scottish version of stamp duty known as the land business transaction tax would apply to these transactions.

However a note published on 28 December shows this position has been reversed and anyone who has been taxed since October 2016 can potentially make a claim.

AJ Bell senior analyst Tom Selby says: “The threat of being hit with a huge tax bill risked seeing members trapped in schemes with high fees or poor administration. Revenue Scotland’s decision to reverse its position is welcome for advisers and clients, providing extra flexibility to transfer properties that are already held in a Sipp or SSAS.”

The change also opens up the possibility of savers being repaid substantial sums where a charge has already been levied, Selby adds.

He points out a commercial property worth £500,000 would have incurred a stamp duty charge of £12,750 prior to Revenue Scotland’s rethink.

Recommended

Rowanmoor reappointed Standard Life’s SSAS administrator

Small self-administered scheme provider Rowanmoor has been reappointed by Standard Life to administer its SSAS portfolio for a 10-year term. The agreement was effective from 1 October. The relationship between Rowanmoor, which is owned by Embark Group, and Standard Life has lasted 20 years. Through the deal Rowanmoor will provide full administration, advisory and actuarial […]

Warning-Sign-Yield-Slow-Stop-Danger-700x450.jpg
1

DB transfer rules leading to unnecessary caution among advisers

Advisers say that FCA rules could be leading to too much caution on defined benefit transfers. While many are calling for greater clarity from the regulator, a new survey by Aegon shows that nearly three-quarters of advisers actually think the rules could be stopping some DB to defined contribution transfers that should go ahead. 37 […]

BlackRock takes £5m stake in wealth manager

BlackRock has taken a £5m stake in AFH Wealth Management, following similar moves from rival fund managers. In a market update, the world’s largest asset manager said it acquired 1.9 million shares in the consolidator firm, resulting in a 5 per cent stake. AFH’s market capitalisation is currently around £100m and has £2.7bn funds under management. […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment