Rowanmoor and IPS Pensions have criticised Sipp providers which do not allow in specie contributions, saying they are hiding behind poor IT systems.
Pointon York Sipp Solutions said last week it is now allowing in specie transfers of commercial property into its Sipp. Along with some other firms, it stopped transfers after HMRC expressed concerns in May over how such transfers were valued.
Rowanmoor and IPS Pensions continued to allow in specie contributions during this period and both claim their competitors are not accepting such transfers simply because it creates more work for them.
Rowanmoor director David Seaton says: “I think there are a number of providers who are systems-driven. They had to protect their business so they said they could not allow in specie contributions. They use the computers as an excuse not to accept these contributions.”
IPS Pensions managing director Rupert Curtis says: “I suspect they are trying to keep things simple because of the new reporting requirements. By not allowing in specie contributions, it generates less administration work for them.”
PYSS technical manager Michael Smith says: “We thought it prudent to stop taking these contributions while there was some uncertainty around the rules.”
tories’ financial proposals
t Repeal of mortgage regulationtScrapping IHT on primary residencestScrapping home information packstConsumer disclaimer for high-risk productstNew “regulatory court” for retail consumerstIntroducing a flexible lifetime savings accounttEnding forced annuitisationtNo maximum age to start drawing a pensiontLighter-touch regulation for final-salary schemestAllow Government to disapply EU regulation not in its intereststAbolish or reduce stamp duty on share purchasestCut corporation tax to 25% for big firms, 20% for small firmstRaise threshold for top rate of income tax