Andy
 
What you are proposing is perfectly feasible on paper but not so easy to achieve
in the real world. The mechanics you set out are close but not quite correct. If
you wish to contribute £12,000, you will actually pay £9,600 net and the SIPP
Provider gets back and adds £9,600.

You do not say if you have an existing SIPP or other pension provision, but
whilst what you want to do is a non taxable investment and thus possible, ver
yfew of the 150 or so SIPP providers accept unquoted shares and those that do
will probably the more "up market" and thus more expensive. The deal itself
could easily cost you £300-£500 plus VAT.

Ongoing costs for such a SIPP could be £500pa and this is going to cut into your
relatively small SIPP value. if however you are consolidating a larger pension
pot, then it might be economic.

If you have further details due drop me a line directly.

Kind regards

Martin Tilley




--- On Sun, 18/1/09, Andy Onacko <aonacko@...> wrote:

From: Andy Onacko <aonacko@...>
Subject: [sipps] Using my SIPP to purchase shares from me
To: sipps@yahoogroups.com
Date: Sunday, 18 January, 2009, 9:43 AM






Hi There,

Does anyone know if I can use my SIPP to buy shares from myself? Basically, I
have shares
in a company that I work for (AIM listed) and would like to use the cash in my
SIPP to buy
the shares from myself. Here's a possible scenario:

1. I deposit £10k cash into my SIPP. My SIPP provider reclaims £2k from HMRC
(20% basic
rate) so that I now have £12k cash in my SIPP. I then reclaim a further £2k (20%
higher
rate tax) via self assessment.

2. I now use the £12k in my SIPP to purchase £12k of shares from myself. This
leaves me
with £12k cash in my pocket i.e. my original £10k plus the £2k basic rate tax
reclaim,
plus I have saved a further £2k in higher rate tax.

The end result is that £12k of my shares are now in my SIPP and, presumably,
free from
any CGT when I eventually sell them.

Finally, if this is allowed then would my SIPP have to pay any stamp duty when
it buys the
shares.

I would be grateful for any insight into this.

Many thanks,

Andy.