Frequently Asked Questions

"Genuinely Diverse Commercial Vehicle" is a type of vehicle that enables the investor to purchase residential property with a SIPP/SSAS. It is used in schedule 29A in the Finance Act 2004 as a description of conditions which have to be met before pension monies can invest without triggering tax charges associated with direct investment in residential property.

SIPP
"Self Invested Personal Pension" - A SIPP is the name given to the type of UK government approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of HM Revenue & Customs (HMRC) approved investments.

SSAS
"Small Self Administered Scheme" - A SSAS is the commonly used abbreviation of the name Small Self Administered Scheme, a type of UK Occupational Pension Scheme. Schemes are trust-based and established individually, usually by directors of limited companies or specified employees of the company.

There are three different categories that a GDCV can come under;

• Real Estate Investment Trusts (REITS)
• Trading Concerns
• Other types of vehicle

We use ‘Other types of Vehicle’ to acquire residential property.

Below are the basic requirements needed to enter into a GDCV:

• Portfolio of at least 3 properties or the portfolio must be worth at least1 million
• No one property can be worth more than 40% of the total funds under management
• No private use of any of the properties
• No individual SIPP/SSAS investor can own more than 10% of the investment/asset worth
• Gearing limited to 50% of the funds assets

The full list of GDCV specifics can be found in:

• RPSM07109440

The legislation concerning pensions as from 6th April 2006 (A-DAY) is contained in the:

• Finance Act 2004
• Finance Act 2005
• Finance Act 2006

A GDCV enables a SIPP/SSAS to invest in Residential Property and any income or returns made in an investment of this type is not treated as holding ‘taxable property’. The purpose of structuring the investment in this way is to ensure that SIPP’s and SSAS (as regulated pension schemes are potentially subject to additional tax charges on investment in to residential property) may lawfully do so without charge to income tax or capital gains tax on the income and gains earned by them. A GDCV can also invest in tangible movable property which includes art, antiques, jewellery, fine wine, boats, classic and vintage cars, stamp collections and rare books.

Investors looking to take advantage of recent residential property opportunities may consider now the time to invest in this type of asset class.

Yes, here at WSL we can create a GDCV tailored to your clients needs and if requested, hand the management of the vehicle back to you.

WSL require a minimum of just 11 clients to go in to a vehicle with the minimum fund raise of £1 million.

The team at GDCV UK work to a framework which enables us to turn an idea into a GDCV within 4 to 6 weeks.

If you have any questions or would like any further information about our services please click here to contact us.