Lending through a Pension Fund can be very tax effective

A SIPP is a Self-Invested Personal Pension fund that allows you to control over where your pension is invested. The more common alternative is to have a managed pension where professional fund managers make all the investment decisions on your behalf.

We believe that the inherent stability of ThinCats loans and the attractive rates of return available make them a valuable part of an investment portfolio, especially a SIPP, increasing the overall returns and reducing volatility.

Using a SIPP is particularly tax effective for higher rate tax payers because funds transferred to a SIPP immediately attract tax relief at your marginal tax rate. In addition, the interest earned by a SIPP is tax free.

Already over 30% of the funds being leant on ThinCats are from SIPPs and we believe that over the next few years they will be the most popular way of lending on ThinCats.

There are a few potential pitfalls when setting up a SIPP; in particular there are many different types and only a few that give you the flexibility you will need to make your own lending decisions.

Download our simple guide explaining how to set up your own SIPP.

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