Sipp borrowing rules seen as 'penal'

Sipp specialist A J Bell, has attacked the Revenue’s confirmation of the refinancing of a Sipp loan post A-Day to fall under new borrowing, and therefore under the new rules. A J Bell says this could leave thousands of Sipps borrowing cash under the pre A-Day rules, where the maximum borrowing is 75% of cost of property; in order to aid commercial property purchase, stuck with uncompetitive loans. Moreover, any borrowing related to in-specie transfer, or transfers consisting of assets rather than cash, from one Sipp provider to another, will also undergo a new test against the 50% limit...