Pensions 

Make sure you know your Sipp rules

Make sure you know your Sipp rules

A recent court ruling has left investors who have made in specie contributions of shares, property or any other permitted asset other than cash to their pension plan facing the prospect of hefty tax penalties. For many years, in specie contributions were accepted by HM Revenue & Customs (HMRC) and self-invested personal pension (Sipp) providers as legitimate investments that qualified for full tax relief. However, HMRC has now won a legal battle to only give cash contributions tax relief. It may look to recoup millions in tax relief given to investors on in specie contributions, although some lawyers believe that it will struggle to do this, as its own manual gave incorrect guidance.

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