Investing through Your Pension with a SIPP (Self Invested Personal Pension) or FPT (Family Pension Trust)

A SIPP is a personal pension for which the person investing for retirement decides what their pension fund is invested in. Traditionally pensions are managed by a pension fund manager who may invest in volatile stocks and shares or boring old cash and the investor has no control or influence on this decision.  Investing this way not only offers incredible tax advantages but also puts you in control of how your pension is invested for the future.

Contributions into a SIPP attract relief at an individual’s highest rate of tax. So, as an example, a  40% taxpayer, putting £60,000 into their fund would give the  buying power of £100,000 to invest in a prime resort property or ethical green investments which Emergis currently have on offer.

It is also possible to borrow additional funds against the value of your SIPP or FPT. As much as 50% of the value of a SIPP/FPT can be borrowed to increase the overall fund for investment. So, as an example, a fund that has a value of £200,000 can be increased by 50% or £100,000 to making a total of £300,000 available to invest.

Any type of pension can be transferred into a SIPP, for instance many people have several 'frozen' pensions from previous employment or businesses and/or personal pensions that they can transfer. This is a complex area and it does need professional advice.

To find out more about investing through a SIPP (Self Invested Personal Pension) or FPT (Family Pension Trust) please call Emergis on 0845 409 8250 and we will arrange for an independent pensions expert to provide an initial assessment at no cost to you.

Emergis Limited does not give financial advice. Whilst Emergis Limited believes that the various opportunities we have on offer present excellent investments, each investor must undertake their own research to satisfy themselves before proceeding.

The (Financial Services Authority) are the government agency that since April 2007 have been responsible for regulating SIPPs. This is how they describe a SIPP:"The self-invested personal pension (SIPP) itself is a pension wrapper that holds investments until you retire and start to draw a pension income."

SIPPs are designed for people who want to manage their own fund by dealing with, and switching, their investments when they choose. They may have higher charges than other personal pensions or stakeholder pensions. For these reasons, they are more suitable for large funds and for people who are experienced with investing.

With standard personal pension schemes, your investments are managed for you within the pooled fund you have chosen.

SIPPs are a form of personal pension scheme that give you the freedom to choose and manage your own investments. Or you can employ and pay for an authorised investment manager to make the decisions for you.

Most SIPPs allow you to select from a range of assets, such as:

• particular stocks and shares quoted on a recognised UK or overseas stock exchange;
• government securities;
• unit trusts;
• investment trusts;
• insurance company funds;
• traded endowment policies;
• deposit accounts with banks and building societies;
• National Savings products; and
• commercial property (such as offices, shops or factory premises).

This list is not exhaustive and different SIPP operators will offer different ranges of investment choices. It’s unlikely that you will be able to invest directly in residential property within a SIPP. Residential property can’t be held directly in a SIPP with the tax advantages that usually accompany pension investments. But, subject to some conditions including restrictions on personal use, residential property may be held in a SIPP through collective investment vehicles, such as real estate investment trusts or property trusts, without losing the tax advantages. However, not all SIPP operators accept this type of investment.

Before 6 April 2007, most SIPPs were not regulated by the FSA. This usually means that complaints and problems that relate to events before this date about SIPPs are not covered by our complaints and compensation arrangements. From 6 April 2007, the FSA regulates the operation of all personal pension schemes and the sales advice process.

Current investment opportunities available through a SIPP or FPT

• Barbados - The Merricks Beach Resort, St. Philip, Barbados from£245,000 - £1,195,000
• Brazil -Guarapua Beach Resort, Bahia, Brazil from £30,000 - £600,000
• Cape Verde - Dunas Beach Resort, Sal Island, Cape Verde from €104,950 - €799,950
• France - Center Parcs
• Dominican Republic - Las Canas Beach Resort, Dominican Republic from £100,000 - £750,000
• Greece -Halcyon Hills Luxury Resort & Spa, Samos, Greece from £21,000 - £735,000
• Grenada - Old Harbour from £95,000
• St. Lucia -The Marquis Estate, St. Lucia from £130,000 - £495,000
• St. Vincent -Buccament Bay Beach Resort, St. Vincent from £25,000 - £1,095,000
• Costa Rica -Carbon Offset Investment from $12,000USD
• Panama - Sustainable Timber Investment  from $30,000USD per unit
• Ukraine -Agricultural Farmland Investment from $1,000 USD per hectare

Emergis have selected various investment opportunities that can be funded through your pension using a SIPP (Self Invested Personal Pension) or FPT (Family Pension Trust).