NB. You may have seen in Pensions Week Magazine recently that a company called Freedom SIPP Ltd has been told to wind up its SIPP  due to administrative deficiencies identified by the FSA and HMRC. We would like to make it clear that there is no connection between the company Freedom SIPP and Avalon's Freedom SIPP product. Avalon has invested heavily using modern systems to ensure our SIPP administration is of the highest quality and we insist on staff being qualified pension administrators.

A personal and highly flexible pension scheme

The Avalon Freedom SIPP is the ideal way to draw together pension arrangements accumulated over time, as well as continuing to build up further pension assets. Pension assets can be brought together under one roof with far greater control and focus on personal requirements.

Unlike other traditional pension arrangements, a SIPP is a highly personal and flexible pension scheme that is exclusive to the individual.

In effect, it is a personal pension bank account that may include many different types of investment and can build up into a very diversified portfolio of assets.

Once established, a SIPP can accept capital lump sums and regular contributions (within limits set by the Inland Revenue) and where possible and appropriate, transfers in from other pension arrangements accumulated over time.

These might include:

 • Current and former employers UK tax approved occupational  pension schemes

 • Personal pension policies or Protected Rights transfers

 • Retirement annuities

 • Additional voluntary contributions

 • Section 32 buy out plans

All new subscriptions received into the plan will receive tax relief at your clients highest marginal rate.

Why not ask for an illustration of future benefits for yourself or your client? We will be happy to email one over to you – we just need a few basic details. Please use the ‘contact us’ section of the website if you would like us to contact you. 

Freedom of Investment Choice

With the Avalon Freedom SIPP your clients are free to invest their personal pension contributions the way they want to.

Through the Freedom SIPP and subject to Inland Revenue investment restrictions, they can invest in any unit trust, open-ended investment company (OEIC), or investment trust. They may also invest in cash deposits, UK and overseas equities, fixed interest securities and UK commercial property.

They can elect to have their own investment manager who can make all investment decisions for them and act on their behalf, they can consult you, their own financial adviser before providing us with their investment decisions, or they can manage the investment themselves. The choice is theirs.

Discretionary or Advisory Managed Account

If they choose to appoint an investment manager to manage the assets held within their Freedom SIPP on a discretionary basis, Avalon will require a Fund Management Form to be completed by the Investment Manager.

This document also outlines the basis on which Avalon will interact with their nominated investment manager.

Investment Types

Unit Trusts

The main feature of a unit trust is that the price paid for each unit always directly reflects the value of the underlying shares on bonds in the portfolio. This means the unit price of a unit trust will tend to fluctuate less than an investment trust’s share price.

OEICS

An OEIC (or Open Ended Investment Company) is a collective investment which works in a similar way to unit trusts. The main difference between the two is that in the case of OEICs, charges are not included in the single buying price but are shown separately for greater clarity.

Investment Trusts

Whilst investment trusts provide the same basic service as unit trusts and OEICs, their structure gives them a higher risk/reward profile. One key difference is that the price you pay for investment trust shares does not directly reflect the value of investments in the portfolio. It could be higher or lower depending on whether or not that investment trust is in demand. This feature gives an opportunity for greater rewards but with added risk when compared to unit trusts and OEICs.

Property and SIPPs

Particularly where the property is used for business purposes, buying the premises via a SIPP and leasing it back to the business can be attractive for a number of reasons

• Rental income and capital growth are tax free

• Rental payments can be treated as expenses by the business for tax purposes

• The business’s covenant as tenant could add to the investment value of the property

• The SIPP and any assets within it, including the property, will be outside your estate for inheritance tax purposes

• The monies used to purchase the property will attract tax relief when first invested into the SIPP

All literature and costs associated with the application and set up of the Freedom SIPP can be found on this website (you will require Adobe Acrobat). Alternatively go to the ‘contact us’ section of the website if you require additional assistance.

Avalon Investment Services and its staff cannot provide investment advice. Always seek the advice of a suitably qualified independent financial adviser.

The Freedom range of products should not be considered short term investments. There can be no assurance that capital growth will occur in the early years and therefore if you withdraw from the investment at an early stage you may not get back the full amount invested. Past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise. If you invest in investment trusts you should be aware that the share price will not always reflect the underlying net asset value of the investment in its portfolio.

The Avalon Freedom SIPP is a self invested personal pension plan marketed by Avalon Investment Services Ltd. Avalon Investment Services Limited is the provider and administrator of the Avalon Freedom Self Invested Personal Pension and has appointed Avalon SIPP Trustees Limited as trustee of the scheme.

 

 To download our SIPP brochures, fact sheets and application forms click on the  Download Literature button to the left

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Avalon is the trading name of Avalon Investment Services Limited. Registered Office: 2 Market Place, Tetbury, Gloucestershire, GL8 8DA. Registered Number:3792386 England. Authorised and regulated by the Financial Services Authority.