SIPP's in Croatia

[r0machka]

Does anyone know about the current use of SIPP's( UK Self Invested Pension Plans) in Croatia?

It's just an idea but...

A SIPP allows a UK citizen to pay tax free into a pension plan, and direct that pension plan to be invested where you want it. So...

I own a company in Croatia which owns some Croatian real estate. Could I simply pay money into a SIPP which then reinvests that £1 +22/40% in my Croatian company. The company in turn could then either further develop the real estate, or pay me back the money it owes me from the initial start up and subsequent loans.

I can imagine some bleating by HMRC about having your SIPP reinvest in a company in which you have an interest, so I guess there may be some "offshore tax planning solution" which could avoid prying eyes in the first place.

Its important to differentiate that my company's real estate is effectively commercial rather than residential property (one exception I've heard about with SIPPs).

Most grateful for any thoughts / experiences / useful contacts?

[r0machka]

I guess thats a no then!!!

help...

[Carol]

I seem to remember that it was expected that the Chancellor would allow SIPPs to be used for exactly that purpose two years ago but then just before the budget in March 06, Gordon Brown did a U-turn. As i recall it threw a lot of businesses who had geared up for advertising campaigns etc and it ruined a lot of individuals plans for their pension savings. So I don't think you can do it, but maybe you've been told differently? Why not ask your IFA or tax advisor? if you get an answer, it would be interesting to know the definitive answer.

[r0machka]

Yes, the problem then was that people were investing their sipps into residential property (ie their holiday home)...the chancellor then stopped that and only allowed them to be invested in commercial property - ie shopping centres, marinas, hotels, B&B's, or even a pretty little farm ....

i'll let you know what I hear.