Investing in syndicated deals through pension

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BobbyFowler

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I've got my own business & currently have 50K in my own company pension. It's tied into a number of Quinn Life Funds & is doing grand. Is it possible to use the pension fund (rather than my own cash) to invest in one of these Syndicated Property Deals & to avoid paying the normal 20% capital gains tax which seem to be the norm. I was looking at that Augusta Fund which invests in German Property over the weekend. It projects that a 50K investment could pocket close to 98K when it matures in 5 years time. Any advice what to do with the 50K or should I be happy with where it is & hope that I get 10% per annum return on it?
 
The Augusta Fund is just that...an investment fund.

It is not a pension fund - so unless you set up a Self-Admin Pension Scheme then you can not get pension tax breaks on an investment in a non-pension fund.

Whether or not Quinn-Life will get you 10% and whether or not you should be happy with 10% is a personal view.
 
Yes, you can invest in the Augusta fund as a pension contribution and gain the associated tax reliefs.

As for whether it is a better investment, I don't know, although you might consider if your existing pension funds are mainly in equities, a property investment could provide useful diversification.
 
Gonk - it does not seem that Augusta has approval as a pension fund provider, unless the OP has a self-admin pension how do you think that they can access it as a pension investment?
 
The OP mentions he has his own company pension. That could be an SSAP, or if it's not, in his circumstances he is in a position to set one up.
 
No, that sounds like an Exec Pension.
I doubt any SSAP would invest in Quinn-Life funds :)

A SSAP is quite expensive to set-up, it is not a decision to take lightly!
 
Cheers for that - no I don't have an SSAP. I heard it's expensive enough to set up & not worthwhile with the amount I've got aside at the moment. I'm in my early 30's - any advice on where I may get stronger returns on my pension investment to date. At the moment I put about 1K aside each month into it.
 
Bobby I'm sorry but I left my crystal ball at home this morning!

I would not read too much into Augusta - or anybody else - predicting returns of about 15% per annum for their funds.
 
Never leave the house without your Crystal Ball South - my parents beat that into me ;)
Fair enough - the charges & low with Quinn & I've spread my dosh over 10 of the different funds (staying away from Bonds & Cash) - they're performing fine at the moment. The Augusta idea seems strong whatever about their predictions. If there's a similar fund which I could invest in as a pension contribution and gain the associated tax reliefs I'd consider it.
 
Bobby - there are a multitiude of such funds (including the Augusta one) that you could invest in if you went down the SSAP route.

Factor in a cost of up to €4k in the first year and €2k a year thereafter.

The investment management fee would usually be lower than under an Exec Pension arrangement such as the one you have.

It becomes better value once your fund reaches a ctirical mass north of €300k.

Hope that helps!
 
Bobby,
Since your existing Plan with Quinn is a conventional Insured Plan, it cannot invest in external funds (non Quinn funds). The only way you can invest in funds such as Augusta and other such offerings is to either:
  1. Set up an SSAP (not justified at you current contribution level), or
  2. Set up a Self Directed type Insured arrangement (Irish Life, Standard Life)
The Self Directed structure offers greater investment flexibility, but can cost a bit more. One needs to be careful that any such investment in syndicate funds are structured so that no Exit Tax is deducted. Some syndicates are not structured to take "pension money" and therefore if Exit Tax or CGT is applicable, any "pension money" invested loses some of the pension tax benefits.
 
Don't Standard Life have a selection of fund managers and funds, if one chooses to go down the Managed Fund route (within the self-directed route)...and Augusta is not one of them?
 
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