Temporary changes to pension processes as a result of Coronavirus (COVID-19) relating to loan payment and rent holidays

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.

Disclaimer - All information in this post was correct at time of writing.