can i use income from a property for sipp?

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i have a property portfolio of commercial and residentail properties, in my name

i want to start SIPP. can you please tell me:

1. SIPP plan to have and how to start it for year ending Mar 2018 (not a lot of time)

2. can i use the income to make SIPP contribution up to 40k pa?

many thanks

Replies (3)

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paddle steamer
By DJKL
19th Mar 2018 12:27

Likely no, but speak to an accountant .

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By Adam12345
19th Mar 2018 12:30

1. You'll have to see an IFA

2. No (unless you have other income which you haven't told us about) - if you have no relevant earnings (employment income or self-employment or FHL) you will only get tax relief for £3,600 per year.

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paddle steamer
By DJKL
19th Mar 2018 13:09

DIY Sipps, untouched by IFA hand, are quite possible, and simple, but whether they are the best of breed re costs/charges is obviously unknown- really depends on circumstances.

At outset, when funds invested are not that vast, saving on IFA cost can greatly reduce/ eliminate impact of slightly higher charges if one has picked the wrong one.

I have a fairly low cost SIPP (still in growth rather than in use stage of development) and I quite happily chose that myself- max annual fees during this stage 200 p.a (so that sort of gives away who it is with) which is not that bad.

As an aside from my experience the property SIPPs are somewhat pricey, the scale and size of property within needs to be pretty large to make all the fees worthwhile, while the OP does not say he/she wants to invest in property within the SIPP I thought it might be pertinent given how he/she earns his/her crust. (Property letting)

Still, likely academic, if £3,600 max p.a. it will take a good few years before property will be on point (Unless he/shehas other schemes he/she can transfer)

If does consider transfers in then yes, agree, IFA is likely worthwhile, though must admit I did not myself bother employing one (but then again I have been dealing with pensions for over thirty years, both my own and in the very distant past clients')

All depends on OP's financial competence as to whether using an IFA is really needed.

My hypocrisy here is I have suggested to individuals posting on AW that they should, re tax/accounts etc, seek professional advice but here am suggesting to the OP that it is possible to DIY their own pension if they know, to a degree, what they are doing.

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