View more on these topics

Sipp rentals to hit 8%

The rental charge for unconventional Sipp investments such as paintings and antiques is likely to be as high as 8 per cent, says Hornbuckle Mitchell director Neil Marsh.

The Inland Revenue requires people who use alternative investments within their Sipp, such as paintings hung at home or antiques, to pay the going market rent for what is eff- ectively a benefit in kind.

Marsh said discussions with officials and industry figures have delivered a consensus figure of 8 per cent which could deter many investors.

He warned that the majority of Sipp providers will also not want to deal with the valuation and insurance of niche items.

Marsh says the Revenue has already said that it will levy a charge on assets that it deems to be depreciating, effectively ruling out clas- sic cars as Sipp holdings as these will face a wasting asset charge.


NU’s Mom suite will feature 12 managers

Norwich Union’s manager of managers’ suite, set to launch this month, will include mandates run by the fund arms of rival life offices including Aegon and Standard Life.

ScotEq Intl warns of tax-free dangers

IFAs must warn their clients of the threat of inheritance tax on supposed tax-free savings vehicles, cautions Scottish Equitable International.

Scheme aims to engage the public with IFA sector

Alan Swaysland’s letter on “Free PFS advice service helping the wrong client” (Money Marketing, May 5) throws an interesting light on the approach of some IFAs to trying to engage more customers with the IFA sector.

What was known as the “CAB/Sofa” scheme has been inherited by the PFS. I have attended one session of the steering group which is overseeing this service. It is a pilot scheme and a report is due this year. Only then will it be possible to make an assessment of the success or otherwise of the experiment.


News and expert analysis straight to your inbox

Sign up


    Leave a comment