Temporary changes to pension processes as a result of Coronavirus (COVID-19) relating to loan payment and rent holidays6th May 2020
Although some sectors of agriculture are weathering the coronavirus storm quite well for others there are serious issues. For those whose cash-flow has been particularly impacted and who have loans or rent, land or buildings from SSAS or SIPP pension schemes a recent announcement from HM Revenue & Customs may offer some help:-
- HMRC will accept payment holidays on loans to connected parties and rent holidays on commercial property as arm’s length commercial decisions without a valuation. The Scheme should still be able to demonstrate that the decision was on an arm’s length commercial basis
Purchase of land through pension schemes has been a common strategy for farmers and so this may be of particular relevance to this sector but the relaxation of the rules applies equally to other industries.