The UK government introduced a new kind of personal pension scheme with the Self Invested Personal Pension (SIPP) scheme. The new scheme is included within Registered Pension Schemes under Section 150 of the Finance Act 2004. Subscribers to SIPP can invest their pension funds in any asset approved by HM Revenue & Customs (HMRC).

SIPP is different from standard personal pension schemes in that the subscribers can manage the fund investment on their own. Standard schemes, on the other hand, entrust the task to an insurance company or other third party. SIPP is administered by the Financial Services Authority (FSA) and investments should be in assets approved by an FSA regulated Independent Financial Advisor.

SIPP subscribers can not only invest in assets of their choice (subject to the approval mentioned above) but also switch between assets when they want. They can thus invest in assets that generate the highest returns from time to time.

Certain real estate investments qualify as approved assets for SIPP. Crown’s land products in the Cayman Islands (British Overseas Territory in the Caribbean) are approved assets. Developers of these land products can help investors to arrange a discussion with a regulated Independent Financial Advisor.

Using SIPP funds to buy land plots in the Cayman Islands has the advantage that you can acquire attractive investment properties using your pension funds, instead of your free personal savings. Paying the full price using SIPP funds has the advantage that you can get an assured 30 percent return over a five year period if you enter into a buyback agreement with the property developers.

The buyback agreement gives the developers an option to buy the property back at a price that is 20 percent over the price you paid during a period of five years, in addition to the 30 percent return on your Self Invested Personal Pension funds.

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