PBR05: SIPPS ‘misuse’ stamped out

The chancellor has announced a crackdown on people using tax breaks from Self
Invested Personal Pensions (SIPPs) to purchase second or holiday homes.

Under new rules coming in from 6 April next year, SIPP and other
self-directed pensions will be prohibited from obtaining tax advantages when
investing in residential property and some other assets such as fine wines.

The government said it remains committed to encouraging investment in a range
of assets as part of pensions saving and so investment in diverse vehicles that
hold residential property will continue to be allowed.

But it warned that if it sees such vehicles being used to get around the new
rules it ‘will not hesitate to take action’.

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