The Government provide us with benefits such as income tax relief on contributions into a pension scheme, tax efficient growth within the scheme and of course a lump sum on retirement and although these are still in place, with the withdrawal of higher rate tax relief on some pension contributions, the complicated new anti-forestalling provisions and the introduction of the 50% tax rate from April, clients may not get as much of a benefit from their pension scheme as they planned.
ISAs, EIS and VCT would all make viable alternatives to the basic pension scheme and if managed well, could make planning my client's future much more rosy.
Richard Hurst
Director
023 8046 1200
Hi, do you think an EIS investment can be transferred to a SIPP after the 3 year period?
ReplyDeleteBe intereted in your thoughts.
Thank you for your comment. In theory this is possible, but in practice very few SIPP providers will be keen to be involved. This is due to EIS shares being upquoted, which means they are difficult to value and a SIPP provider must be able to easily sell any securities it owns for the client. In my experience few SIPP providers will actually agree to own unquoted shares.
ReplyDeleteHope this helps