UK - An ‘oversight' in the Finance Act will allow a small limited company to put all a self-invested personal pension fund in its own shares, Standard Life claims.
The wording of the Act, which sets investment limits for small self-administered schemes and SIPPs, refers to schemes set up by employers.
But Standard Life senior technical manager John Lawson says this excludes SIPPs which are not set up by specialist providers.
He said: “This will only work for a limited company, not a sole trader. Where you have got a SIPP set up by a limited company there is no bar to a SIPP buying 100pc of its shares in a small limited company.”
He believes the ‘oversight’ may well be missed by the Inland Revenue, which is currently inundated with other queries on the Act.
However, Pointon York SIPP Solutions managing director Christine Hallett said it was “a loophole that was never intended”.
But she expects the Inland Revenue will close it fairly quickly - “probably in the next draft which we are expecting in November”.
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