Buying a woodland with your pension
by Angus, 27 February, 2015, 0 comments
There are at least three ways to finance a woodland purchase with your pension fund. The simplest and most common way of using your pension funds is to withdraw the tax-free lump sum which is available in most pension schemes and use that for the purchase. This is usually up to 25% of the value of the fund and can be taken after the age of 55 (it used to be 50, but because of longer life expectancies and longer working lives it was increased about 5 years ago). This is then cash that can be used for any purpose whatsoever and the advantage of investing it in a woodland is that, as long as it is commercially managed and you have owned for at least 2 years, it may also be free of inheritance tax. If it is not likely to be commercially managed - inheritance tax can still be avoided by gifting it to children; as long as you think you will live for at least 7 years and can trust them not to sell it or keep you out! Read more...
