Five steps to owning shares through our specialist funding accounts
STEP 01
Find the right business
A trading company you want to own a share in. It works best when it is not connected to your own company.
STEP 02
Talk to us
Discuss the purchase with our team. We explain how your pension fund can buy the shares, what the rules allow and what happens next. Book a call
STEP 03
Agree a price
The shares must be bought at market value, so an independent valuation is arranged before you agree terms.
STEP 04
Check it properly
Your solicitor and accountant check the accounts, contracts and liabilities, and confirm it is a genuine trading business.
STEP 05
You buy the shares
The purchase completes in your pension fund's name. From then on, growth in the shares inside the fund is not subject to Capital Gains Tax.
How it works
How the shares are bought
We work with Barclays Bank and other reputable banks to open a specialist self-administered account for you. It is funded by your old or current pensions, and the money is then used to buy the shares through a banking arrangement designed to help business owners access capital.
The rules to know
The shares must be bought at market value, backed by an independent valuation.
If the company holds any residential property or tangible moveable property, tax charges can arise unless it qualifies as a genuine trading business under the rules.
If the company is, or becomes, connected to a company that sponsors the fund, the fund can put no more than 5% of its value into its shares.
Your pension fund cannot lend to the acquired business unless it is a company that sponsors the fund, and limits apply if it does.
Share purchases use the pension fund's money, which reduces how much it can lend to your company.
Tax rules can change and depend on your circumstances. Speak to our team before you proceed.
