SIPP Advisors Welcome Reform to Commercial Stamp Duty

George Osborne’s eighth budget delivered plenty of talking points for many parts of society, and whilst his reforms to stamp duty for commercial properties might not be the biggest, they nonetheless come as a welcome surprise for many Self-Invested Personal Pension holders.

SIPP Advisors Welcome Reform to Commercial Stamp Duty

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With immediate effect, stamp duty on commercial property will be 0% on property up to £150,000, then 2% on the following £100,000 and then 5% above that. Any commercial property sold for £5m or more falls under a new 2% rate.

More Enquiries

Companies such as Robert Stones Target Markets understand that these rates will be a welcome change to SIPP holders. There is likely to be an increase in the number of enquiries about commercial property as a result, which is what the changes were designed to do.

SIPP advisors have widely welcomed the changes, which will have a positive impact on their scheme members, and advisors such as Robert Stones Target Markets will be looking forward to promoting this sort of investment when the stock market is fluctuating, as it is currently.

The benefits for investors come from having a physical asset, which many people find very appealing, and this new reduction in duty will make a property investment more affordable. At a time when other investment allowances are being limited, a SIPP can be a valuable option.

Wider Options

SIPPs have become a popular choice because they offer wider fund options than a personal pension. If you have several pension pots from scheme investments, each with a similar strategy for investment, a sudden change will affect all in a similar way, which can leave you vulnerable. Putting all pension savings in a SIPP offers more chance to diversify and spread the risk.

SIPPs have been a great success for investors so far, and this reduction in the cost of stamp duty announced by the Chancellor will open up opportunities for many more, including those looking at buy-to-let property. Savers and investors have had a tough time of late, which makes this reduction in rates even more welcome.

For advice and guidance on SIPPs, check out the Money Advice Service or the Money Saving Expert.

Be aware, though, that any investment comes with an element of risk, so always seek advice and fully research opportunities before committing.