SIPP & SSAS

Question 1

Who regulates SIPP and SSAS

Answer 1

SIPP = FCA
SSAS = TPR

Question 2

Max borrowing for SIPP/SSAS with CV of £400k and existing borrowing of £100k?

Answer 2

£50k

Double negative on the borrowing

Question 3

Name the 3 types of charges on taxable property transactions

Answer 3

1. Unauthorised Member Payments Tax Charge
2. Scheme sanction charge
3. Unauthorised payments tax surcharge

Question 4

What is the Unauthorised Member Payments Tax Charge?

Answer 4

40%

Question 5

What is the scheme sanction charge?

Answer 5

15% - this is 40% but can be reduced by 25% if the unauthorised payment charge has been paid.

Question 6

What is the unauthorised payments surcharge?

Answer 6

15% - it is applied when unauthorised payments of 25% or more, of scheme assets, are made in any one year.

Question 7

Explain the limits and regulations around SSAS lending

Answer 7

Maximum of 50% of scheme assets can be loaned

Interest rate must be at least 1% above BOE base rate

Loan and interest must be secured as a first charge for the entire term

Repayments must be at least annual

Term - must be a maximum of 5 years but can be rolled over for a further 5 years once