View more on these topics

Sipps set to usurp equity release

Sipps will end up in direct competition with equity release after A-Day and could be a more efficient vehicle to unlock the value of property.

By using a Sipp in conjunction with a discounted gift trust, a parent could pass a property on to their child while at the same time releasing equ-ity, minimising IHT and avoiding paying interest charges to a mortgage firm.

The child or children can use a Sipp to buy the property from the parent at the going market rate. The parent then invests the proceeds of the sale into a discounted gift trust, setting the income level at an amount that covers the market rate rent they would have to pay their to children’s Sipp to continue living there while avoiding any benefit-in-kind charges.

The parent is therefore not materially disadvantaged and gets IHT relief on their estate.

Skandia senior market dev-elopment manager Colin Jelley says the Sipp members will not get tax relief on the property as it will be classed as a transaction rather than a contribution but the IHT savings could be substantial.

Jelley says: “It is a good way of reducing IHT exposure and passing property on but the client has to be comfortable with having a large chunk of their pension invested in residential property.”

Hargreaves Lansdown head of pensions Tom McPhail says: “Sipps could be a viable equ-ity-release proposition but the detail of the IHT rules is still missing.”


Wizard plan for Barclays

Hedge fund specialist Fortune Asset Management is teaming up with Barclays to offer retail investors a capital-protected investment plan linked to the performance of a fund of hedge funds.

Bestinvest buys IFA Waterson Jones

Bestinvest has acquired London-based IFA Waterson Jones, which will now be integrated into the Bestinvest group.The firm, set up in March 2002 by Martin Jones, who will now be become a director of the group.Bestinvest chief executive John Spiers says: We are extremely pleased that Martin has selected Bestinvest as his future partner from a […]

Nigel Legge

The investment boutique chief who once bought a curry for his staff’s Christmas party tells James Phillipps that a good working environment is key to retaining top fund managers

Defining moment

The Marconi case must have banished any doubts about the intentions of the Pensions Regulator

Help, I’ve been appointed as a trustee. What are my responsibilities?

Graeme Robb, Technical Manager at Prudential looks at the key duties and responsibilities of a trustee.  This article will consider the following: Duties to be performed on appointment Investment duties Protecting the interests of beneficiaries Keeping accounts and records Distributing property to beneficiaries Duties to be performed on appointment Obtain a copy of the trust […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm