Thank you for doing this video. Very well explained, I’ve watched a lot of videos on this subject and most people seem to struggle explaining it as well as you have 😊
Great video Simon, really informative. Very much appreciated. Can you go into further explanation with the SSAS? IE, from my research I have found that it is actually classed as a trust therefore, does it escapes IHT rules etc. What other benefits are there with a SSAS being classed as a trust if that is the case? Also, are there different types of SSAS's in terms of the flexibility they offer depending on the provider you choose? Is land considered commercial property within a SIPP/SSAS? Can you buy and sell land for instance? Thanks Irfan
Hi Irfan, so both a SIPP and a SSAS, indeed any regulated pension is strictly speaking a form of trust arrangement, but there are no IHT breaks that a SSAS had over a SIPP, both are subject to the IHT breaks Re passing on the fund to beneficiaries
Based on the same question, the trading co. contributes 320,000 in SIPP and could only borrow half of it which would be 160,000. So, the remaining payment of commercial property 480,000, need to be paid (480,000-160,000= 320,000). Is the remaining payment of 320,000 would be paid by trading co. itself?
Trading co contributes 320, assuming over time… and assuming that’s all there is in the pot, the pension fund borrows 160.. then there’s enough cash in the pension pot to acquire the building for 480
So how do you get money into a personal SIPP? Do I pay dividends from my Ltd directly into a SIPP? Or pay myself the dividend & then I pay it into a SIPP?
You can make corporate contributions or personal contributions, corporate will attract corporation tax relief and personal Income tax relief. However be careful when paying yourself a dividend and then making a personal contribution as you have to have the required level of ‘relevant earnings’ of which dividends don’t count
@@simongray2484 Is there a particular type of SIPP that can buy commercial property? My service provider has told me it's not possible, yet they tell me my pension is a SIPP!
Strictly speaking it’s not a conversion as such but the creation of a different type of pension wrapper, ie a SIPP and then you’d transfer the SSAS pot into the new SIPP with no tax implications
Never been more engaged in financial education - Quality
Many thanks glad you enjoyed it
Thank you for doing this video. Very well explained, I’ve watched a lot of videos on this subject and most people seem to struggle explaining it as well as you have 😊
Thanks glad you found it useful
Very energetic presentation. Caffeine? But seriously, very informative...
Another fabulous video ❤❤❤
A very useful video and clearly explained.
Thanks glad you liked it
Great video Simon, really informative. Very much appreciated.
Can you go into further explanation with the SSAS? IE, from my research I have found that it is actually classed as a trust therefore, does it escapes IHT rules etc.
What other benefits are there with a SSAS being classed as a trust if that is the case?
Also, are there different types of SSAS's in terms of the flexibility they offer depending on the provider you choose?
Is land considered commercial property within a SIPP/SSAS? Can you buy and sell land for instance?
Thanks
Irfan
Hi Irfan, so both a SIPP and a SSAS, indeed any regulated pension is strictly speaking a form of trust arrangement, but there are no IHT breaks that a SSAS had over a SIPP, both are subject to the IHT breaks Re passing on the fund to beneficiaries
Since a trust does not die when the person who set it up dies, there is no iHT!
Based on the same question, the trading co. contributes 320,000 in SIPP and could only borrow half of it which would be 160,000. So, the remaining payment of commercial property 480,000, need to be paid (480,000-160,000= 320,000). Is the remaining payment of 320,000 would be paid by trading co. itself?
Trading co contributes 320, assuming over time… and assuming that’s all there is in the pot, the pension fund borrows 160.. then there’s enough cash in the pension pot to acquire the building for 480
So how do you get money into a personal SIPP? Do I pay dividends from my Ltd directly into a SIPP? Or pay myself the dividend & then I pay it into a SIPP?
You can make corporate contributions or personal contributions, corporate will attract corporation tax relief and personal Income tax relief. However be careful when paying yourself a dividend and then making a personal contribution as you have to have the required level of ‘relevant earnings’ of which dividends don’t count
A SSAS can have up to eleven people in it. Could it have just one person, so more akin to a SIPP?
Yes it can just have one person, doesn’t have to be multiple
@Simon Gray Cheers! Been wondering for ages, as examples shown always seem to show more than one.
Since you recorded this, the annual allowance, from April 6th 2023, is £60,000, rather than £40,000.
Yes that’s right
I thought a SIPP cannot invest in properties! Isn't that where SSAS comes into play?
Neither of them can invest in residential properties. Both of them can invest in commercial properties
@@simongray2484 Is there a particular type of SIPP that can buy commercial property? My service provider has told me it's not possible, yet they tell me my pension is a SIPP!
Can convert a SSAs to Sipp
Strictly speaking it’s not a conversion as such but the creation of a different type of pension wrapper, ie a SIPP and then you’d transfer the SSAS pot into the new SIPP with no tax implications