Property pension investment now

A new fund allows investors to get a head start on the rest of the nation and invest in residential property as part of their pension now.

From April 6th next year (A-Day) new pension rules will make it far easier for people to invest in residential property as part of a self-invested pension plan (SIPP), with accompanying tax relief.

These rule changes are predicted to push home values in the buy-to-let market up by as much as 15 per cent, as well as providing a boost to the ailing pensions industry.

But for those unwilling to wait until spring, City Living has produced a new scheme allowing investors to put residential property in their SIPPs both before and after A-Day - gaining a head start on the rest of the country.

The scheme does this by utilising a dedicated residential buy-to-let fund from Curzon Capital, meaning investors place their money in a listed fund and not directly into property - allowing investment to start immediately.

By investing in a SIPP, income on the fund is exempt from capital gains and income tax - effectively adding 40 per cent to the fund's profits for higher rate tax payers.

The minimum investment in City Living is only £20,000 - but this buys property exposure of £40,000 thanks to debt-gearing provided by Royal Bank of Scotland.

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