From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: sipps-anyone got a crystal ball?
Date: Tue, 19 Jul 2005 11:11:07 +0100


"Tim"  wrote in message
news:dbic12$2no$1@nwrdmz01.dmz.ncs.ea.ibs-infra.bt.com...
> > The house price then plummets to £100,000. You then buy the house
> > back off the SIPP for £100,000. The SIPP is now only worth £100,000,
> > but you have the house plus £100,000 left in your back pocket.
>
> Yes, OK ...
>
> "Andy Pandy" wrote
> > You can then use £60,000 of this to plough back into your SIPP ...
>
> Not if you are already paying maximum contributions to your SIPP!
>
> Thus, it will only work if you have spare "unused" contributions allowable
> into the pension.  If you are already paying the most that you can which
> will still get tax relief (related to earnings), then you wouldn't have any
> advantage by selling house to SIPP then buying it back when it's cheaper.

From next April the maximum is 100% of earnings! I doubt too many people would
be paying that much. You won't of course get 40% tax relief if you contribute
earning below your 40% band - but you could feed it in over a number of years.

--
Andy