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Transfer Property from SSAP to Self?

  • 09-08-2013 09:22PM
    #1
    Gary7
    Registered Users, Registered Users 2 Posts: 13 ✭


    According to the Revenue Pensions Manual, Chapter 19, a person transferring property from their SSAP, is treated as making a distribution. I know there are rules prohibiting a person from transferring property to themselves or connected party.

    I have 2 queries, in relation to an SSAP used to purchase a property, where the SSAP drew down a loan. The fund now owns a devalued asset where the loan is higher.

    1. If the property and the loan are transferred together, does this reduce the value to nil and remove tax issues? The pensions manual refers only to the asset, and I wonder did anyone ever envisage the property collapse for these schemes?

    2. As the property cannot be transferred to the beneficiary or a connected party, can it be sold to an unconnected party and then purchased by them at arms length?

    I know these are very general scenarios, but I have heard of people with properties in pension funds, who are now unable to fund the pension contributions, and I'm just trying to work out what options they'd have? Anyone I've spoken to i.e. people working in pensions, seems very unsure.

    I would have thought these scenarios should all have been thought out before anyone ever purchased a property via their pension fund?

    Any thoughts?
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