IFA Wealth Forum

IFA Wealth Forum

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    Darren Beddard    Group moderator
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    seminars and networking events
    We will be currently holding events with some of the leading companies in todays markets on the below subjects, and also be talking about some of the investments out there in the market place at the moment. For more information please contact the below information look forward seeing you soon.


    Protected Rights

    Protected Rights are an element of a pension scheme where an individual had received an annual rebate of part of their National Insurance payments in to their pension. Some employed individuals will have decided to contract out of the State Second Pension (or SERPS as it was known before). By doing this, they will have given up their rights to part of their future State Pension.

    From the 1st October 2008 the government removed the restrictions on placing accumulated Protected Rights funds into a SIPP (self invested Personal Pension Plans). For many people this eliminated one of the last remaining reasons to favour a personal pension over a SIPP.

    These changes now enable individuals to:

     Consolidate all their pension pots under one roof
     Take full control of their investment strategy within their pension scheme
     Have more flexibility with their retirement plans

    Protected Rights monies can be invested in to all allowable investments within a SIPP, including commercial property and unquoted shares. In addition to this, you can borrow against Protected Rights monies, subject to HMRC borrowing rules.

    Whilst there are a variety of separate issues that may be addressed by investors if they are currently still contracted out (contracting out is scheduled to be abolished in 2012), the vast majority of investors will only need to be addressing their accumulated Protected Rights benefits.

    Estimates suggest that there may as much as £100 billion of Protected Rights held in insurance company pension funds. As SIPPs will allow protected rights to be paid out in a variety of ways that may not be available via original insurance company arrangements (such as unsecured pensions and alternatively secured pensions) this may make SIPPs even more attractive to some investors.

    In-specie contributions

    Under current legislation, contributions to a registered pension scheme must be a monetary amount. HM Revenue & Customs (HMRC) guidance confirms that such contributions may be cash, cheque, direct debit or bank transfers. A simple transfer of property or shares to your SIPP (known as an "in-specie" contribution) is not permitted.

    It is, however, possible to make an "in-specie" contribution provided it is made in settlement of a legally enforceable promise to pay a certain level of monetary contribution to you SIPP.

    The Pointon York SIPP is one of the few schemes in the market place that will accept
    in-specie contributions of assets in lieu of a cash equivalent. In a "cash poor - asset rich" climate, clients can utilise their privately owned assets to make their contribution for the current tax year, attracting the same tax relief benefits a cash contributions would do.

    Commercial Property, Unquoted Shares and Share Incentive Plans (SIPs) are common assets that can be contributed in-specie.

    For further information or to request a process fact sheet on in-specie contributions and SIP 2 SIPP transfers please contact:

    Andrew Smith - Business Development Manager

    Telephone: 020 7648 5285

    Email: asmith@sippsolutions.com


    Or email info@cisplatform.com

    http://www.cisplatform.com
    0161 838 9070
    • 09 Jun 2009, 4:02 pm