Property Syndicate - can i do this?

[Liverpool]

I am an owner/director currently looking at pension mortgage options.
Ideally I would like to buy Holiday Villa (c1m) in France with 2 close friends and which i would finance my part with my pension.
I have read all of the posts on syndicates etc.

Q1. If we form a property syndicate limited company - can I invest via an SSAP? - Is this breaching the 'arm length' rule?.

Q2. Will I get a pension mortgage for 33% of the property?

Q3. Any tax advisors who specialise in this in the Munster region?

Q4. Any other suggestions?

 

[South]

1. Yes that would breach revenue rules.

2. It would be difficult for a pension trust to borrow more than 75% of the value of the asset it is buying - in your situation 33% is 100% of the value of the asset so it would be a problem.

3. Yes.

4. If setting-up a SSAP, buy assets that you do not plan to use personally.

 

[simplyjoe]

Whilst McCreevy went some way with the pension legislation the 'arms length' rules are still very onerous. If you use the property yourself then you cannot avail of an SSAP. In UK it is common for companies to buy their own trading property via their SSAP using professional trustee companies.