Are the plots already leased and trading as supermarkets? Yes, full details of stores and leases will be included in the LLP documentation sent out.
Is there a deadline set for applications for the fund to be fully subscribed?
Yes:
18 April 2008 to register interest.
30 May 2008 LLP documentation dispatched to investors.
27 June 2008 deadline for return of LLP documentation.
How much can I invest?
The minimum investment is £7500.
Do I have to hold this investment in a pension?
No.
What happens to my money if the investment does not go ahead?
Monies will be fully refunded.
What if my circumstances change and I don’t want to go ahead with this investment?
Application fees are non-refundable once LLP documentation has been prepared.
How will I find out what’s happening with my investment?
An annual statement will be issued by the accountants. The fund is FSA regulated. Updates will also be available on the website.
What is a SIPP?
A Self-Invested Personal Pension. It is individually owned (can’t be joint) and has wider investment scope than a normal personal pension but is usually used either to invest in property, individual stocks and shares or a commodity e.g. Gold. A SIPP can borrow 50% of its value to buy property. The maximum current annual contribution to get tax relief is £225,000 or 100% of earnings whichever is higher (some exceptions apply). There is a lifetime allowance (largest fund you can have without tax penalty), which is currently £1,650,000 (again some exceptions). You can retire from age 50 (increasing to 55 in 2010) and 25% of the fund is available as tax-free cash; the balance is used to provide an income.
How does tax relief work?
Higher rate taxpayer (from 6.4.08)
To invest £10,000 you contribute £8,000 from income or savings to your pension, which then gets an uplift from HMRC later that month of £2,000 (20%) to achieve a gross pension fund of £10,000. You get a contribution certificate which is set against their earnings for the tax year in which the contribution is made and your tax bill is reduced by a further £2,000 (20%). Total net cost of £10,000 invested is therefore £6,000
Basic rate taxpayer (from 6.4.08)
To invest £10,000 you contribute £8,000 from income or savings to your pension, which then gets an uplift from HMRC later that month of £2,000 (20%) to achieve a gross pension fund of £10,000.
What is a SSAS?
A Small Self Administered Scheme (SSAS)
It is for directors/owners of limited companies with a maximum membership of 12 and has wider investment scope than a normal personal pension but is usually used either to invest in property, individual stocks and shares or a commodity e.g. Gold. It can also borrow 50% of its value to purchase property etc. It can also lend up to 50% of its value to the company to buy equipment. The maximum current annual contribution to get tax relief is £225,000. The director can be paid more than 100% of his earnings up to the £225,000 ceiling as long as it is commercially viable. The lifetime allowance (largest fund you can have without tax penalty) is currently £1,650,000 (again some exceptions). You can retire from age 50 (increasing to 55 in 2010) and 25% of the fund is available as tax free cash; the balance is used to provide an income.
How does tax relief work?
All contributions are made by the company on behalf of the director so are set against corporation tax.
How can I set up a SIPP?
The Individual Investment Company work along side St. James’ Place who are experts in Wealth Management. Advice can be requested via the application form.
How do I sell my share or buy more?
There is an option to trade after five years, details of which will be in the LLP documentation.
What happens on death?
The investment will be calculated and paid out or transferred. Full details available in LLP documentation.
Can a purchase be made in a company name?
Yes.
What are the tax implications for companies investing in this proposition?
Advice should be sought from an independent advisor. Please contact us for details.
What if I don’t pay 40% tax?
Tax relief will be available at a lower rate. Full details available in LLP documentation.
If not fully subscribed what will happen?
In the unlikely event of this scheme not going ahead, all application fees will be refunded.
What are the management costs?
Approximately 0.4% per annum. Full details will be included in the LLP documentation.
Frequently asked questions