Using a SIPP to invest through FundingKnight
Investments in FundingKnight loans can be made using a Self-Invested Pension Plan (SIPP).
What is a SIPP?
It’s a government-approved personal pension scheme, which allows individuals to make their own investment decisions from a range of investment types and providers approved by HMRC.
We’re proud to say that having been through a comprehensive due diligence process with a leading SIPP provider, FundingKnight has been approved to accept SIPP money.
Tax-free investing
SIPPs, like normal personal pension schemes, provide tax benefits. Funds placed in a pension benefit from significant tax relief, and any interest earned by a SIPP is tax-free. This means you’ll earn more money investing through a SIPP than through a normal FundingKnight account.
It also allows the pension holder to control how and where their pension is invested, subject to the approval of the SIPP operator.
Through FundingKnight’s peer to peer platform, pension holders can select a range of individual companies, company types or projects in which to invest. This can be an effective way of diversifying a pension portfolio.
How do I invest my SIPP with FundingKnight?
A SIPP account must be set up by an approved SIPP operator. Your operator will set up the account, transfer money from your SIPP Bank Account and supply you with a username and password with which to access our platform.
There are restrictions around the type of loans a SIPP can invest in. Most SME Business loans and Green Energy loans are allowed but, for example, some types of Property loans are not permissible. However you don’t need to worry about this – our platform will only allow you to invest in suitable loans.
If you wish to invest in loans that are not suitable for your SIPP, you can set up a normal investor account alongside your SIPP account. You will need to connect a separate bank account and these funds will not be eligible for any tax benefits.
What about SSAS?
A SSAS (Small Self-Administered Scheme) is a type of occupational pension scheme available in the UK. SSAS funds can be invested via FundingKnight directly.
Find out more about investing with a SIPP or a SSAS
To discover whether a SIPP or a SSAS is more appropriate for you, we invite you to contact SIPPclub. SIPPclub offers assistance to high net worth, experienced investors with significant assets. There is no charge for this service.
Whilst SIPPclub won’t provide you with advice, it should be able to point you to a SIPP operator that could meet your needs, setting out for you the full cost of setting up and running a SIPP.
FundingKnight is unable to advise whether or not a SIPP is right for you. If you are in any doubt, you should consult a suitably qualified independent financial adviser.