Stand-out Q – unquoted shares

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SAT, 24 MAR 2018

Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.

Question

Is it possible for a SIPP to hold unquoted shares?

Answer

There is nothing in pension tax legislation that prevents a SIPP from holding unquoted shares. Where a SIPP holds shares in a company and that company owns taxable property e.g. most tangible moveable assets, then there is potential for the SIPP to be treated as holding taxable property indirectly. Only limited indirect holding of taxable property will not be subject to the tax charges on unauthorised payments. This is via genuinely diverse commercial vehicles (see the Pensions Tax Manual)

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