Move shares into a SIPP.

Anyone know?

Adrian

Don't think so - an 'in specie transfer' can be made from another authorised pension scheme, but otherwise its a sale & repurchase, with tax relief available as if it's a normal contribution.

I believe there may be possible exceptions for shares acquired in one's employer through an ESOP/ESOT.

Someone on

might know more. rgds, Alan

There was an article in the Sunday Times on 17th September

that made me think it was possible. Below are some bits taken from it: "You invest money in a Sipp and claim tax relief on the contributions. The government pays 22p for every 78p you invest in a pension, taking the total contribution to 1. So if you invest 20,000 your fund will be boosted to 25,641. Higher-rate taxpayers get a further 18p through their tax return, or 4,615 in this case. But you may not get this until long after the contribution is made, so it is put aside for later. Next comes something called a "connected party transaction". You take 25,641 of shares or unit trusts held outside the pension and swap them for the cash in your Sipp. This means you end up with cash of 25,641 and your shares or unit trusts are now held in your pension." This seems to be swapping cash for shares, rather than just moving shares into a SIPP.

Adrian.

In message , Adrian writes

The key is this bit...

In other words it is saying you sell the shares and put the proceeds in the SIPP. You may then choose to buy the shares back through the SIPP

[]

yeahbut:

(1) The "connected party transaction"[0] is just a sale & repurchase. (2) You've got to have 20K to put into your SIPP (3) You've got to have 25K641 in shares outside your SIPP to 'transfer' in. (4) You've got to be prepared to put 25K641 into a VCT (5) You've got to earn enough to claim the tax relief.

It's an interesting, but pathalogical example - credpoints(tm) to the Octopus blokes for spotting it, but none to the Times for trying to turn it into a story.

I'd guess that there are possibly, say, five people in the country to whom those exact circumstances apply.[1]

Pensions and VCTs are probably at opposite ends of the spectrum for most investors.

rgds, Alan [0] IMO, a "connected party transaction" is just a share cert re-registration to avoid dealing costs and stamp duty - CGT may still apply. [1] Like, why is the 25K641 in shares not in a ISA?

Thanks for your replies. When it said 'swap' I assumed that is what it was. I know very little about what a "connected party transaction" is, but as Alan suggested one would assume CGT would still apply.

Adrian

"John Boyle" wrote

It sounded more like: "you sell the shares directly from yourself to the SIPP...".