Crowdfunding And Peer-To-Peer For SIPP And SSAS
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Making a welcome return to the SIPP scene is P2P (peer-to-peer) lending, giving you the opportunity to earn your interest tax free within your SIPP (and SSAS too)
Join The Ranks Of Those Who Are Now Lending Their SIPP Money On A Range Of Peer-To-Peer Platforms
It’s Back ~ Peer-To-Peer Lending From A SIPP
Since 2014, SIPPclub has helped many of its Members lend in excess of £20 million on crowdfunding and peer-to-peer platforms. Much of this money has been invested from SIPPs, although last year, the majority of the investment was made from SSAS.
In the second part of 2016, the number of SIPP operators accepting peer-to-peer lending virtually closed as a result of changes imposed upon them by the Financial Conduct Authority. The reasons for this were detailed in our article entitled What You Should Know About Peer-To-Peer In A SIPP.
At the end of 2017, a long-standing and well-respected SIPP and SSAS operator opened up its SIPP to 10 peer-to-peer platforms. Money can be invested on the same platforms using its SSAS.
It’s currently undertaking due diligence on other peer-to-peer platforms. Should they meet HMRC pension guidelines, they’ll be added to the suite, enabling you to diversify your money across a wider range of peer-to-peer platforms.
The annual cost of the SIPP is charged at 0.35 per cent of funds up to £500,000 and 0.25 per cent of funds thereafter. There’s a minimum fee of £1,250 per year. SIPP fees are subject to VAT.
In addition to a number of crowdfunding and peer-to-peer platforms, both its SIPP and SSAS allow you to invest in a wide range of stockmarket assets, deposit accounts, high interest loan notes, commercial property and other asset classes.
Talk To Us About Crowdfunding And Peer-To-Peer
If you'd like to know more about investing your SIPP or SSAS money into Crowdfunding or Peer-To-Peer, please complete the form below.
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
Please read our full Terms which includes criteria for SIPPclub membership.
Crowdfunding And Peer-To-Peer Risk Warning
When a platform has been assessed and approved by a SIPP or SSAS operator, this does not imply that any loan or investment opportunity is endorsed in any way. A SIPP or SSAS operator's due diligence review is limited to ensuring the processes and procedures of the platform are in line with both FCA and HMRC principles. It's entirely your responsibility for carrying out your own due diligence on any loan or investment opportunity before agreeing to lend or invest your pension money on a platform. As a SIPP or SSAS operator will continually review platforms from a regulatory perspective, it's possible for a platform to become 'unapproved' if something changes.
With peer-to-peer lending, your capital is at risk if you lend to individuals and businesses. You may lose some or all of the capital lent if the borrower defaults and is unable to meet its liabilities. Historic loan default rates are not necessarily indicative of future default rates. In addition, lending is an illiquid investment, which means you may not be able to access the capital you lend for the duration of the loan period, even if the platform offers a secondary market. Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdfunding is generally targeted at investors who are sufficiently sophisticated to understand the risks and make their own investment decisions, based on their knowledge, experience and financial capacity. Neither crowdfunding nor peer-to-peer lending is covered by the Financial Services Compensation Scheme. The tax treatment of your investment is dependent on your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of crowdfunding investment or peer-to-peer lending, you should consult a suitably qualified independent financial adviser.