| | | Sipps pension plan reforms
Many of us are unaware of the reforms that are about to take place with regards to pensions and residential property. New regulations are about to start which will allow everyone to invest part of their pension into property from April 6 th next year. The day in April is known as A Day. Research by a company, IFA promotion has shown that the majority of people - around 84% - are unaware of A-day. In fact most people thought the term A Day stood for A level results day or Armageddon. The survey also revealed that about two thirds of those who were aware of the changes in pension regulations were not going to do anything about their own pensions before A-Day. The chief executive of IFA Promotions, David Elms commented: "This survey makes a point, a large number of people dont even know that the pension reforms are happening, let alone what the implications to them might be. As a result, millions of people could loose out by not taking advantages of the changes." Under the new reforms people who have a self invested pension plan (SIPP) will be able to invest the funds within that pension in Residential property, both overseas and here in the UK. Effectively these properties will be held tax free. A number of experts are predicting that the volume of people who are about to hit the property market with their pension funds could increase house prices by up to 15%. |
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