Basic Rate Tax Relief set to Reduce in April 2008 – Stack up that SIPP Now

Feb. 1, 2008 - PRLog -- From April 2008 the Chancellor has simplified tax rates reducing basic rate tax from 22% to 20% and maintaining the higher rate of 40%.  This means that for every pound contributed to a Self Invested Personal Pension (SIPP) after April 2008, HM Revenue and Customs will only pay an extra 25p into the fund as opposed to the 28p currently enjoyed by everyone under the age of 75 whether a taxpayer or not.  So the race is on to make sensible SIPP investments.

Landcorp International is offering investors the chance of using SIPPs to purchase half acres of land, viewed by UK law as a commercial property investment, in a prime Canadian development location.  Priced at 12,880 pounds for a half acre, a purchase today would end up costing just 10,046 pounds at basic rate tax relief, whilst after April 2008 you’re looking at 10,304 pounds.  The sense of urgency is clear.

Danny Cryer, Pensions Specialist for Kingsway Wealth Management also offering SIPPs advice to Landcorp International comments, “Importantly an asset held in a SIPP is only an asset if you can realise the profit, that is to say you can sell the land.  In Landcorp International’s scheme not only are the returns on investment predicted to be high, but also the exit strategy is in place.  When the developer secures planning permission, the land is released back to the market for sale and your SIPP can realise the profit once the asset is sold.  If you do opt for an overseas land purchase it is also prudent to consider currency fluctuations and the inheritance tax position in the country where that land is located.”

The land in question has been earmarked for Forest Lakes Country Club near Halifax in the eastern province of Nova Scotia, and the half acres are available for purchase at 12,880 pounds apiece.  Projections show the land should be valued at 40,000 - 50,000 pounds – between 200 to 300 per cent profit – once planning permission has been secured – which is anticipated for 2010 or soon afterwards.  Investors will have an option – at a favourable rate – to buy into Forest Lakes with its different types of housing, full amenities and golf course.  However there are restrictions on residential property within UK pension funds under current legislation and advice would need to be sought.

So while you’re battling with your Self Assessment to finalise the tax year end April 2007, look to the future and take advantage of that extra 2% basic tax relief before April 2008 comes around.  And what better asset to acquire than a lucrative slice of Canada’s Great Outdoors.

Contact Landcorp International on info@landcorpinternational.com, visit www.landcorpinternational.com, telephone UK national rate 0871 218 3002 or call the Spanish office on 00 34 952 868 250.  

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for further press information or photography please contact Sarah Drane at sarah@purplecakefactory.com or telephone 00 34 607 564 726

Website: www.landcorpinternational.com