There are probably a range of plans that you could use for some form of DIY investing (including help for your business) but we believe there are two types which will normally be applicable:
Self Invested Personal Pensions (SIPPs)
Small Self Administered Schemes (SSASs)
It is these two types that we will focus upon.
Both have significant capacity for you to direct the investment within your own plan.
They differ in that SIPPs are personal schemes whereas SSAS’s are occupational schemes set up by a sponsoring employer.
Both allow investment into unlisted shares, corporate property and both have bor-rowing facilities to top up the amount you can invest.
However SSAS’s have the advantage in that they can loan money to the sponsoring employer on a commercial basis. The maximum loan that can be made is 50% of the fund.
Our view is that the new pension rules established after A Day make it far more likely that most individuals will be using SIPPs, where there are now very generous contribution limits and rules applying.
IF YOU CURRENTLY HAVE A PENSION WHICH IS NOT A SIPP OR SSAS THEN YOU CAN CONSIDER TRANSFERRING YOUR EXISTING PENSION IN ORDER TO SET UP A SIPP OR SSAS SCHEME.
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