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Lending Options via SIPP/ISA/SASS

Lending Options via SIPP/ISA/SASS

Ablrate is able able to offer SIPP accounts through Morgan Lloyd. We are one of only 9 approved peer to peer lending platforms. Morgan Lloyd is also able to accommodate SASS schemes and we welcome those who would like to invest via this kind of pension schemes.

Please follow the Morgan Lloyd link for more details, they will walk you through the process with you and get you set up as soon as possible.

Your SIPP or SSAS enjoys some really attractive tax benefits. As you would expect, HMRC regulates these types of pensions to ensure that the tax advantages aren’t abused.

When considering any type of loan (either directly or indirectly) it is therefore important that you are aware of two key restrictions that form part of the HMRC regulations:

Firstly it is not permissible for your SIPP or SSAS to invest in any loan where you are connected to the borrower (connected in this context means a family member, a fellow director/shareholder of your business or a company over which you have control).

For example the SIPP invests in a loan where the borrower is the SIPP member’s brother.

Secondly it is not permissible to invest in any loan where the borrower is an individual or set of individuals where the lending is for residential property investment/development and this is not their normal course of business.

For example – if the borrower is acquiring a loan to add an extension to his personal residential property. However if the borrower was an individual or partnership whose normal course of business was the development of a property, then this would be permissible.

Where the borrowing is associated with commercial property acquisition / development, then no such restriction applies.

Failure to follow these rules will result in severe tax penalties being imposed of up to 70% of your investment. If you have any concerns or questions, please contact your pension provider.

Ablrate has received HMRC authorisation and we offer an Innovative Finance ISA.

Please be aware that we are not authorised to give advice on pension matters so if you have any specific queries you will be able to get all the answers you need from Morgan Lloyd including account set up, transfers and reporting.

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