[jasonl]

Carrying on from the tax advice thread .

An average carpet cleaner can retire as a millionaire , with a very handsome pension pot . I know several carpet cleaners and dozens of friends who are benefitting from this .

It is kept quiet usually but it is a huge part of many business owners strategy .

A sipp pension means self invested personal pension . You decide and control where your money is invested though most people choose commercial property.

Run down property an be very cheap to buy , it is then sold to your pension pot and your business rents it from your pension fund meaning your business gets tax relief for the rent , which then adds to your fund .

Plots of land and commercial property at low costs is available in any town in the uk you just have to look for it .
Over a few years increased property values and rent received along with tax relief adds up to a tidy sum .

http://www.which.co.uk/money/retirement/guides/introduction-to-personal-pensions/self-invested-personal-pensions-explained/

[Ian Gourlay]

i am trying to figure away to get cash out of my personal pennsionwithoutpaying tax for a investment property to be my pennsion without paying tax , but also if you put cash in get extra tax how long does it have to stay in  or would it be better to do above but how long before i can buy the properties

[jasonl]

Ian a sipp can only be used for commercial property now .

Any pensions adviser can arrange it all the cost is up to 2% of the fund value then I pay .8% a year to manage it . 

[Jonathan Evans]

Hi Jason would a holiday let ie a cottage let for holidays be considered commercial?

[jasonl]

I think so so long as it is furnished , you would need advice though

[Jonathan Evans]

Thanks Jason got some time on my hands will look into it.

[jasonl]

Many financial advisers will consult for free on the viability of these schemes .  For me it works out better than  just owning the property and adding rent I would have paid to earnings which I then pay tax on .

I have an allowable expense but ultimately I am still receiving that expense in my pension pot .

[Ian Rochester]

We started a SIPP this several years ago when we purchased our workshop.  Instead of getting a mortgage to buy the property I used the capital in my private pension to fund the purchase.  Now our business pays rental directly in to my pension pot for using the property.  It's a good way to save on tax. 

[jasonl]

As I see it when you invest in a personal pension the fund the invests in commercial property , a sipp merely does the same but with you in control .