# Self administered retirement trust



## howareya (19 Jun 2006)

I dont know if this should be in the pension section so please move if I have posted incorrectly.

I have been reading the thread in the property section about companies holding investment properties and the idea of a self administered retirement trust (SART) is a prominent idea of avoiding haveing the co. owning the property and instead buying it personally.

Could someone possible provide greater detail of how this (SART) works with regard to buying the investment property personally instead of through the company.


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## Marianne (19 Jun 2006)

Howareya, 

I think you're getting two different ideas jumbled.  

A Self Administereted Retirement Trust is a form of pension fund, whereby you make your own decisions as to what assets your pension fund holds, rather than leaving such decisions to a pension fund manager.  So you have a pension fund accumulated in the normal way (through contributions and/or a transfer from an existing scheme) and you decide that your pension fund buys a property as an asset.  It's important to note that the pension fund owns the asset and not you.  

This is totally different to the idea of a pension-backed mortgage.  Using a pension-backed mortgage, you get an interest-only mortgage to buy a property personally.  The original sum borrowed is repaid from the proceeds of your pension fund when you retire.

There are loads of threads on Askaboutmoney discussing both self-administered pensions and pension-backed mortgages.


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## howareya (19 Jun 2006)

Marianne,

I see the light.  Thanks very much all these pension options are very confusing to a novice.  
Just on the trust option is it possible to buy numerous investment properties.  Or is there specific guidelines to be followed within the trust.

Again thanks for previous reply


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## Marianne (21 Jun 2006)

It's permissible to buy as many properties as you can afford.  You cannot have any connection with the properties whatsoever (you / your company / anyone connected with you or your company actually using them, for example).  The limits on contributions you make to the Trust are the same as if such contributions were made to any other form of pension plan.


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## James Horgan (23 Aug 2009)

Hi Marianne
I'm new to this site and I'm also relatively new with my sart.  On the same theme as above can you tell me if my sart purchases a property as an investment it is possible for my sart to sell it back to me privately in a number of years? Current market value etc.
Thanks James


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## LDFerguson (24 Aug 2009)

James Horgan said:


> Hi Marianne
> I'm new to this site and I'm also relatively new with my sart. On the same theme as above can you tell me if my sart purchases a property as an investment it is possible for my sart to sell it back to me privately in a number of years? Current market value etc.
> Thanks James


 
No - self-dealing is prohibited.


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