Unquoted Shares
The pension regulations introduced at A Day permit pension schemes to purchase unquoted shares in both UK and overseas companies, although this is subject to various restrictions.
An unquoted company is a company which is not officially listed on a recognised stock exchange within the meaning of Section 841 ICTA 1988.
SSAS
There are limits on the total value of shareholdings in its sponsoring employer that an occupational scheme can purchase. The market value of the shares at purchase must be less than:
- 5% of the market value of the scheme's assets in any one sponsoring employer.
- 20% of the market value of the scheme assets where the shareholdings relate to more than one sponsoring employer.
These shareholding limits only apply to schemes that are classed as occupational pension schemes as defined in the Finance Act 2004.
In contrast, there are no restrictions with regard to a SSAS investing in unquoted shares of a company which is not associated with the sponsoring employer or its scheme members.
SIPP
A SIPP can wholly invest in unquoted shares on the basis that the SIPP is not defined as an occupational scheme and that the specific circumstances of the member did not deem the investment to be classed as taxable property.
The maximum percentage holding of a company's unquoted equity that IPS allow within a SIPP is 19% between the SIPP, the member and any connected parties.
For further information regarding the purchase of unquoted shares, please refer to our Unquoted Share Guidelines.
If you would like to proceed with an investment in unquoted shares, please complete the following paperwork and return it to your usual point of contact:
It is important to note that this type of investment is not straightforward and it is advisable to discuss plans with us before proceeding and seek advice from a suitably qualified independent financial adviser. If you do not already have an independent financial adviser, information can be obtained from www.unbiased.co.uk or telephone 0800 085 3250.
