Funding asset purchase via pension
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I’ve seen that it’s possible’s to find an asset purchase against investments on a recent Seen Through Glass video where he bought a boxster against his investments, I don’t know the ins and outs of how he did this.
However, I’d like to do the same to fund a 911 (finally taking your guidance here Nik!).
Is this possible?
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Seems more sensible to me to fund a potentally rising asset such as property with a loan of this sort.
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I’ve seen that it’s possible’s to find an asset purchase against investments on a recent Seen Through Glass video where he bought a boxster against his investments, I don’t know the ins and outs of how he did this.
However, I’d like to do the same to fund a 911 (finally taking your guidance here Nik!).
Is this possible?
Hi Pete
Hope you well and life is treating you well.
Technically you can use a Pension/SIPP as security for a loan. However HMRC are very likely to treat the loan as an unauthorised pension payment and tax it accordingly. In addition most scheme trustees are unlikely to allow it and I am not aware of any lenders that are happy to accept Pension/SIPP assets as security.
So it would difficult and expensive so maybe not your first choice!There is an article covering it here :
https://generationmoney.co.uk/pension-loan-borrowing-against-a-pension-in-the-uk/
There are a few lenders that will consider ISA or GIA holdings as security and these don't attract the same level of HMRC attention so are likely to be a little more competitive. P1, who are part of investment committee, are working on a partnership with Lombard who will offer loans using GIA and ISA as security. I think its is option that they are likely to offer on an advised basis only though.
Cheers
Nik
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Hi Nik,
Great to hear from you! We’re good here thanks! How are you getting on?
My eldest is now insisting on visiting The Valley on a regular basis now so who am I to refuse?Cool, thanks for the guidance. I thought it seemed like a bit of a cheat to access pension early. The PCP I have been offered isn’t horrendous so will probably be the cheapest option. Annoyingly, I’m not far from a decent capital injection which would make this a complete no brainer. Which I may need to have a chat to you about if we can schedule a call? I’d like to talk to an adult about minimising the tax hit.
Cheers
Pete -
Hi Nik,
Great to hear from you! We’re good here thanks! How are you getting on?
My eldest is now insisting on visiting The Valley on a regular basis now so who am I to refuse?Cool, thanks for the guidance. I thought it seemed like a bit of a cheat to access pension early. The PCP I have been offered isn’t horrendous so will probably be the cheapest option. Annoyingly, I’m not far from a decent capital injection which would make this a complete no brainer. Which I may need to have a chat to you about if we can schedule a call? I’d like to talk to an adult about minimising the tax hit.
Cheers
PeteHi Pete
Drop me a message and we can set a call up.
Let me know when you're in the Valley and we can get a couple of laps in.
Cheers
Nik