Loans

The SIPP may make loans to unconnected 3rd parties.  Although there is no prescribed basis for these loans we would follow the basis detailed below:

• The loan must be secured
• Loan should be for a period of no more than 5 years
• A commercial interest rate must be applied to the loan
• Repayments must be monthly and on an interest and capital basis

To allow this transaction to take place we will require our standard instruction to be completed which includes the following information:

• Details of the company that loan is to be made to
• Written confirmation that they are not connected
• Solicitor details for drawing up the loan document