Can anyone advise on the following
Currently I have a half share in a second home. I plan to sell up my primary home, buy out the other half and move there where I will separate a barn form the house to create a holiday let. Estimated cost of conversion around
50k.At 55 I'm anticipating a poor payout from a private pension at age 60, though there's good scope for me to continue working if I want to.
As I read it, there may be an advantage to do what I'm planning with the barn under a Sipps scheme, providing I don't live there myself. I think I'm right in saying that selling my primary home will be exempt from capital gains. I will have to pay VAT on any building work and the tax advantage will be in the income derived from lettings, but I'm assuming that I can't draw this as income until I actually retire.??
So, would there be any benefit in having a Sipps now or should it be deferred until I need a pension income?
Jeff