You can now use your pension fund to invest in sustainable forestry and agricultural projects using a SIPP.
A Self Invested Personal Pension, known as a SIPP, is a personal pension for which the person investing for retirement decides where their pension fund is invested. Traditionally a pension fund manager chooses whether to invest in stocks and shares, bonds, cash or other asset classes, with the investor having no control or influence.
Any type of pension can be transferred into a SIPP. For instance many people have ‘frozen’ pensions from previous employment or businesses and/or personal pensions that they can transfer. This is a complex area and requires professional advice. We have teamed up with one of the UK’s leading independent wealth management companies, which specialises in pensions and investments. They will carry out an initial review completely free of charge for potential investors to assess whether their existing pension plans could benefit from being transferred into a SIPP.
If an investor already has a SIPP, or once the SIPP has been set up, the investor selects the investments in which they wish the SIPP trustees to invest. It may well be that sustainable forestry or agriculture is one option as part of a balanced portfolio.
An investor using a SIPP can make further contributions into their SIPP and is entitled to full tax relief which means that if a 40% taxpayer paid in £100,000 it could only cost him or her £60,000.
Please consult with your financial adviser with regards to the advantages of perhaps placing your forestry investment into a Self Invested Pension Plan.
Yes Invest Ltd are not authorised to offer investment advice regarding SIPPs or pensions or any other regulated investment so please consult with your own IFA or we will be happy to recommend one in your area.
