UK Property: SIPPS bombshell

C

CoffeeBrew

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I know a few people in the UK who were expecting SIPPS to come to the rescue of the UK residential property market.

I don't think any of them saw this coming...

[broken link removed]
 
I think in essence the same thing has been done here in the budget as it is now less tax efficient to put property into pension. Pension mortgages less attractive.
 
1. Brian Cowen has introduced a new limit of EUR5 million on the maximum tax allowable pension fund on retirement. Where a retirement fund exceeds this limit, a once-off income tax charge will apply to the excess when it is drawn down.

2. Related to this change, a limit of EUR1.25 million has been set on the size of a tax-free lump sum that can be drawn from a pension.
I think it will make putting property in pensions less attractive due to income tax hit at the end. Income tax is double capital gains so in my eyes I would be thinking of keeping property out but I stand corrected.
 
Ok thanks Marko, its a different league to me so no worries here

Thanks for the help.

Roy
 
....is now less tax efficient to put property into pension
Click to expand...

Marcowitzman, by this do you mean that it is only less tax efficient if you have a pension fund of €5m or more?
 
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