2008 is now recognised as the worst year in a generation for investments. During this year the following asset returns were recorded in the major asset classes:
The option for pension investors to buy commercial property is now well established. However since ‘A Day’ connected party transactions have been radically altered. In plain English this means you can now legitimately buy an asset that you are connected with, the restrictions have, in the main, been removed. So if you own a commercial property your pension fund could buy it from you. Any such transaction must be done on an arm’s length basis, which means it must be transacted at its true value.
This means owners of commercial property might be able to release money by selling their property to their pension fund.
Likewise there is no absolute restriction on pensions buying unlisted shares (although there are plenty of mini restrictions, which can often be quite limiting), but in essence a pension (SIPP or SSAS) can buy shares in an unquoted company. So if you own shares in your Company you could sell them to your pension fund or you could set up a new company, issue shares in this, and then the pension could subscribe for the shares.
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