Acquiring property through a self administered pension fund.

[Builder]

Can anyone tell me what exactly is meant by acquiring a property through a self administered pension fund. How does one go about it. If a property is purchased can it be sold before retirement. Does the money received go into the pension fund until 65.

 

[Cameo]

Basically the pension fund (actually the trustees of the pension fund will become the legal owner who hold it for your benefit ) buys the property you specify.

Property must be at arms length - ie the legislation says that you cannot live or rent it or purchase your holiday house this way.

You can sell the property at any time by instructing the trustees to do so (no capital gains tax would be payable if it was due as it's in your pension fund)

You can only draw down the money at your chosen retirement age.

Other points
Pension fund may be able to borrow to purchase property so you can gear your fund.
As far as I am aware you need to be self employed or be a 5% director.
Can't use assets outside fund for equity.
Reasonably costly to set up a Self admin pension - though some cheaper products offerings are now available