mushtaq

I have been reading about the new pension rules that are suppose to be coming into force from next tax year, which will enable people to buy residential property, e.g. investment property, holiday homes, etc., with a personal pension.

Property purchased in this way would not be subject to capital gains tax or tax on rental income.

Here is a brief summary of the rules:

Half the pension fund value can be used for that purchase.

Contributions are currently limited to a proportion of earnings.

From April 2006 pension contributions can be 100% of earnings up to a maximum £215,000 and a lifetime limit of £1.5 million.

I gather that this is still not finalised but to me seems like a great idea and should really help people to escape the retirement trap in this country, as it's becoming more difficult to live as a retired person.