What is an EPUT?
Well, an EPUT is an Exempt Property Unit Trust, a particularly interesting UK vehicle that most people have never heard of.
EPUT has been around since 2002 and they are extremely useful. The only entity that can invest into an EPUT is a pension scheme. So, by their very nature they are tax free. A pension scheme in the UK buys units in a UK EPUT and the EPUT can then go and buy commercial property, for example.
One of the main advantages of EPUT is they do not have the restrictions on borrowing rules that you would see in a normal UK pension. So, the 50% of net scheme asset rule does not apply to an EPUT.
So, if you’re particularly looking to buy an expensive commercial property, £1-5 million (for example) and you want to put it into a pension vehicle for your retirement, then speak to us about EPUT. We may just have the unique answer for you here at One Crown Pensions.
