Q. I have a Self Invested Personal Pension (Sipp) which owns the commercial property from which my company operates. I am not happy with the service received from my Sipp provider and wish to move to a different one. My solicitor has warned me that there may be a Stamp Duty cost in doing so, which seems unfair. Is this true?
A. A Sipp can be a great way to own business premises, as your business will pay rent to your pension scheme and any growth in the property value is protected from capital gains tax or corporation tax. However it is important to have the right support from the Sipp provider. It is possible, however, to move providers or even to move to a Small Self Administered Scheme (SSAS), a similar scheme offering a couple of extra features. Fortunately, HMRC have recently clarified that where a property is transferred on an “in specie” basis from one scheme to another and where the beneficial owner (i.e. the member of the scheme, you) of the asset is the same, no Stamp Duty Land Tax is due.
Q. I have had my current bank account for over thirty years. I keep reading about special deals to move but is it really worth the bother?
A. Most people in the UK are in a similar position to which you describe and hold onto a bank account just because their parents told them it was good place to be. It certainly is worth shopping around and the switch might not be as painful as you might expect. Good offers from some banks include a simple cash payment of around £125 just for switching. One relative newcomer to the banking sector recently raised the stakes in the battle for current accounts by offering a package worth £316 in the first year including an initial £100 store voucher and £10 per month to spend in-store!
If you have a question you would like Trevor to answer, please email it to: yourmoney@rwpfg.co.uk or post it to Your Money, Rutherford Wilkinson Ltd, Northumbria House, 21-23 Brenkley Way, Blezard Business Park, Newcastle upon Tyne, NE13 6DS.
