Government 'could end Sipp loophole'
Posted: 23 May 2006 16:20:02 GMT
The government could be set to close a loophole that allows investors to put their pensions in to self invested personal pensions (Sipps).
Sykes Anderson, a group of solicitors, found a loophole that permits people to invest their pension money in to holiday homes via a French Leaseback scheme.
The scheme is currently permitted under Sipps regulations because it is classed as dealing with financial property.
However, many analysts are convinced the chancellor is set to close this window of opportunity for investors ahead of the Sipps regulations coming in to force in July.
Stuart Law, managing director of Assetz, commented that Gordon Brown has shown in the past that he is prepared to close down investment opportunities abruptly.
"There is no doubt that the government is dead against the private purchase of residential property within a pension, which it recognises as little more than tax avoidance for the rich, so it is quite likely that this loophole will be closed before the Finance Act later in the summer," Mr Law said.
He added that investors should wait until July before making a move.