Use your SIPP (Self Investment Pension Plan) to purchase Commercial investments that make sense!

Self Invested Personal Pensions (SIPPs) were introduced in 1989 to give those planning for retirement greater control over where their pension fund is invested.

It is quite common for individuals who hold existing pension arrangements to transfer them across to a SIPP so that they can invest in some of the assets allowed, as detailed above.

It is important that under a SIPP arrangement, the trustees will have carried out their due diligence to see what is acceptable for investment purposes, thus ensuring that all investments held in the plan conform to Government regulation.

It is quite possible for a SIPP plan to borrow money and this is set up to a maximum of 50% of the fund total. As an example a fund worth £100,000 could borrow a further £50,000, thus enabling an investment of up to £150,000.

You can make contributions into your pension and the maximum personal contribution for the tax year 2009/10 is £245,000, which may only cost a higher rate taxpayer £147,000, due to 40% potential tax relief and all contributions paid by a basic rate taxpayer receive 20% tax relief.

Pensions and in particular SIPP's can be quite a complex area and 1 Stop Financial Services are specialists in this area of financial planning.