Entry Levels
There are two contribution entry levels:-
£20,000 gross contribution – 50 members
£50,000 gross contribution – 20 members
All individual funds will commence with £1million gross investment deposits.
Each member will have an equal investment in the fund in which they are investing and will receive an equal share of the net rental income and capital gains.
Each individual fund will purchase the shares of the underlying property assets acquired, as determined and established by the corporate structure advisers uhy hacker young. The shares will be distributed to the individual member s.i.p.p. accounts and managed and administered by mw pensions ltd and their associated trustee division.
In the case of “off plan” property purchase, a contract to purchase will be entered into and the appropriate deposit paid. the balance of funds will remain in the trustee interest bearing account until such time as they are required to complete the purchase and assignment of the freehold title.
There is no maximum contribution limit and no limit to the number of individual funds you can choose to invest in, for example an initial contribution of £70,000 could be split 50/20 and across two different funds.
Equally, an initial contribution of £32,000 could invest £20,000 in a fund with the balance held in a high interest bearing account (prevailing rate for “12 month notice account” is currently in excess of 5.5%). the interest payments are paid gross and free of any tax liability as the funds are held in a s.i.p.p. bank account. Future additional contributions could purchase a wide variety of qualifying assets including additional property fund assets.
The potential source of funds for your initial investment is wide-ranging and we detail many of the options. A comprehensive review with your financial adviser will help you determine the source of funds and the level of investment allowed, limited only by your declared annual income. the level of investment should also take into account the potential shortfall you may already have identified and the maximum allowance determined by hmrc. your professional advisor will help you with this.