Seek professional advice before investing your own pension fund. A Sipp pension gives you the freedom to switch out of poorly performing investments.
A Sipp is a means by which you can gain greater control over the investment of your pension fund that might have previously been invested in insurance company's pension funds. Regardless of earnings, any individual aged 75 and under, and resident for tax in the UK , can contribute £3,600 to a pension in any one tax year or a higher amount depending upon earnings.

SIPP members may invest on an individual basis and partners or directors may invest through their SIPPs to purchase the business premises from which they operate.

It also offers the potential for much better returns, because an investor can adopt a more aggressive investment strategy than large pension funds, and yet they get the same tax relief as ordinary personal pensions. The main reason to choose a SIPP rather than a conventional personal pension is to exercise power over the type and range of investments bought, especially having the power to purchase commercial property either directly or with a mortgage, or to buy and hold individual shares.

As well as receiving up to 40% income tax relief on contributions, individuals are also entitled to take a tax free lump sum of up to 25% of their accumulated fund at their chosen retirement age. This can be age 50 and upwards, and 55 as from 2010

The investor is permitted to borrow, via their fund, a further £100,000 making possible a property purchase of £300,000.

Investing in exotic products like jewellery, fine wines, antiques and classic cars is definitely out but it is possible to invest in commercial property. We are a SIPP property investment adviser and are specialists in administering SIPPs that choose commercial property as an investment, especially properties in Spain.