SIPP and SPP ?

[jklondon]

Anyone have pratical experience of these types of investment wrappers.

Reading about the SIPPs (Self Invested Pension) in the Business today allows you to borrow against you invested not pay tax on capital gain and tax on rent provided its reinvested in the fund. I beleive that a SPP (Syndicated Property Plan) is based off SIPPs.

My main question - which is not clear - is how someone like myself - aged 25 can formulate an exit strategy over 4/5 years rather than waiting till I am 50!.

Any ideas, advicde, pointers appreciated ?

Thanks

JK

 

[Simon Gordon]

I don't know zilch about an SPP.

As to a SIPP good sources are:

SIPPDEAL.co.uk

CAPITAPPML.co.uk

The Investors Chronicle have an excellent article on SIPP's this week.

If you are 25 a SIPP would be an excellent place to invest spare capital. Think of it like an ISA - except you get tax relief on contributions, and from 2006 you will have a wider spread of investment opportunities.

Also check out:

Alliance Trust Savings

They offer the most cost effective SIPP on the market.

www.alliancetrusts.com

Good fortune!

 

[JonnyT]

JK,

You cannot get an exit from a SIPP until you are 55 after April 2006.

They are pension plans so you get tax relief up front they pay tax when taking benefits. For most people they are tax neutral long term.

Please be aware that from April 2006 the amount you can borrow within a SIPP is much reduced.

You also need to consider how you are going to get monies into the SIPP in the first place if you wish to purchase property as it aint easy!!!

JonnyT

 

[jklondon]

yep the 55 thing is obviously bit of stinger..thanks.