Pension fund (setting one up)

[vicars]

If I and a few investors raised say �2,000,000 to invest in property and then offered shares in this like a unit trust to people wanting to invest in their pensions (I am thinking of the changes coming in in 2006 and regarding investing in foreign property) what would I need to do to approve the fund as something compliant for pensions? Any help or suggestions most welcome. 

[Miss Zippy]

Firstly, you would need to be authorised by the Financial Services Authority, which is a long and drawn out process. As you can appreciate, the FSA exist to protect the interests of consumers and you will need to demonstrate you have the relevent qualifications and experience in order to receive FSA. Is it unauthorised property unit trusts you have in mind? If so, the Trust Deed setting up the unit trust would need to be approved by the Inland Revenue. To receive revenue approval you would have to ensure that only investors who are exempt from capital gains tax on any gains they make (i.e. pensions, SIPPs, SSASs, charities etc) can invest in the unit trust. Also, pensions cannot currently invest in residential property, only commercial (though the rules are changing in April 2006), so you would have to make sure your portfolio of properties does not include residential property.